The Brokers (re) Evolution

NFA New Regulation

Thu, Sep 27 2007, 15:38 GMT
by Marina Schiaffino

FXstreet.com


Up-to-date Information
· CFTC approves approves changes requested by the NFA
· The Brokers (re) Evolution: The CEO's reply -  FXDD, GFT and FXCM answer to the Open Letter
· NFA New Regulations for Brokers: Tony Juste speaks about it


NFA RegulationThere has been a lot of street talk in the Forex World regarding the new NFA (National Futures Association) regulation for Forex Dealers, whose main consequence is the raise of the required minimum capital to $5Million in cash plus a percent of the customer funds being held. 

In real numbers this should account for about $7-$11Million initial cash, a much higher value that the actual requirements of the NFA which ask for just $1Million of net capital.

The "Currency Trader" magazine states that the new regulation could potentially wipe out 90% of existing forex brokerages, although it’s likely major consolidation would occur if the rule passes.

You can review the opinion of our guru Tony Juste in the Advisor's Blog or review the transcript of the SPECIAL WEBINAR that he made on September 13th. We also have Francesc Riverola, CEO at FXstreet.com, following the current news in the FXstreet.com Weblog. 

You can review the replies of the CEO's of some of the main FX companies to the open letter that Francesc Riverola sent and see how the CEO's give their opinion about the new regulation.

There's a huge amount of Forums where people's talking about the subject. Check out the threads at:


Related Links

Is your forex dealer going to go out of business? by John Jagerson at Profiting with Forex

Brokers against which the NFA has taken legal action:

Other interesting links from the NFA:

Check a full list of regulated brokers on our Forex Brokers Table and find out which brokers are currently passing on the new standards.

Brokers above 5 Million Net Capital
Futures Commission MerchantDSRO Adjusted Net CapitalNet Capital RequirementExcess Net Capital
GLOBAL FUTURES & FOREXCFTC54.662.9975.000.00049.662.997
OANDA CORPORATIONNFA50.837.8995.000.00045.837.899
FOREX CAPITAL MARKETS LLCNFA50.465.6945.000.00045.465.694
FOREX LIQUIDITY LLCNFA39.909.0315.000.00034.909.031
GAIN CAPITAL GROUP LLCNFA29.061.8305.000.00024.061.830
INTERBANK FX LLCNFA25.178.1455.000.00020.178.145
FX SOLUTIONS LLCNFA15.077.1335.000.00010.077.133
PEREGRINE FINANCIAL GROUP INCNFA12.781.6205.000.0007.781.620
IFX MARKETS INCNFA12.293.5495.000.0007.293.549
CAPITAL MARKET SERVICES LLCNFA11.849.4425.000.0006.849.442
ODL SECURITIES INCNFA10.822.7705.000.0005.822.770
IFSCL USA INCNFA7.130.9215.000.0002.130.921
HOTSPOT FXR LLCNFA5.990.6365.000.000990.636
MONEY GARDEN CORPNFA5.162.3345.000.000162.334

A/O Date: 31/07/2007

Brokers under 5 Million Net Capital
Futures Commission MerchantDSRO Adjusted Net CapitalNet Capital RequirementExcess Net Capital
3D FOREX, LLCNFA4.776.6255.000.000-223.375
EASY FOREX US LTDNFA4.731.4325.000.000-268.568
FOREX CLUB FINANCIAL COMPANY INCNFA3.715.1635.000.000-1.284.837
E FX OPTIONS LLCNFA3.342.9435.000.000-1.657.057
GFS FOREX & FUTURES INCNFA3.259.6145.000.000-1.740.386
CMC MARKETS (US) LLCNFA2.330.2385.000.000-2.669.762
BACERA CORPORATIONNFA2.271.6265.000.000-2.728.374
I TRADE FX LLCNFA1.801.9605.000.000-3.198.040
ROYAL FOREX TRADING LLCNFA1.206.1155.000.000-3.793.885
SNC INVESTMENTS INCNFA1.130.6905.000.000-3.869.310
DIRECT FOREX LLCNFA1.117.3835.000.000-3.882.617
ONE WORLD CAPITAL GROUP LLCNFA1.078.9385.000.000-3.921.062
ADVANCED MARKETS INCNFA1.042.8135.000.000-3.957.187
IG FINANCIAL MARKETS INC.NFA1.010.3995.000.000-3.989.601
TRADITION SECURITIES AND FUTURES INCNFA786.2785.000.000-4.213.722
FXCM LLCNFA766.5595.000.000-4.233.441

A/O Date: 31/07/2007

Published on  Sat, Sep 29 2007, 13:27 GMT

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