Tag: FDMs


NFA Proposes Higher Transparency Rules for Retail Execution

The National Futures Association (NFA) has submitted a proposed rule to the US Commodity Futures Trading Commission (CFTC) that will raise transparency levels for retail FX customers when executing in markets.
The proposed rule change, which has the support of the five Forex Dealer Members (FDMs) under the NFA jurisdiction, will provide retail FX customers with a framework for obtaining execution information to review the quality of the execution the customer received compared to that of other customers at the FDM.
Specifically, the rule states that an FDM will be required, upon the request of a customer regarding a specific executed FX transaction, to provide the customer with specified transaction data for the 15 transactions in the same currency pair that occurred immediately before and after the customer’s transaction.

NFA Shifts FX Margins

The US National Futures Association (NFA) has raised margin requirements on three currencies whilst cutting the margin required on one. The changes apply to NFA registered Forex Dealer Members (FDMs) in the US.
The NFA cites recent volatility in the currency markets as well as the margin increases implemented by exchanges 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.

NFA Creates Dedicated FX Compliance Rule

The US National Futures Association (NFA) has adopted a new compliance rule (2-36) to govern foreign exchange transactions. NFA says that it has done so because, “Given the differences between off-exchange transactions and traditional exchange-traded futures and options, the board of directors does not believe that it is appropriate to apply the full array of […]