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NFA Shifts FX Margins

The US National Futures Association (NFA) has raised margin
requirements on three currencies whilst cutting one. The changes apply to NFA
registered Forex Dealer Members (FDMs).

The NFA
cites recent volatility in the currency markets and the margin increases implemented
by CME and ICE with respect to foreign currency futures involving the Mexican
peso, Japanese yen, and New Zealand dollar, in notifying members to raise
margins on those three currencies. Mexican peso positions must not be backed by
8% margin, Japanese yen by 4% and New Zealand dollar by 3%.

At the same
time, NFA has cut the margin requirement on Swiss franc positions from 5%,
which was imposed after the Swiss National Bank pulled its euro peg in January
2015, to 3%.

The changes
come into effect from close of business (central US time) on December 5.

Colin_lambert@profit-loss.com

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Colin Lambert

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