When I discussed the implications of the NFA’s requirements, I mentioned that one of the potential outcomes was that brokers would encourage clients to move their accounts offshore US in order to be able to hedge trades and basically avoid Anti-Hedging and potentially even the Anti-Pricing requirements.
Seems that FXCM, as always, was first to embrace this solution openly and to start soliciting clients to shift their accounts to its FXCM UK subsidiary. In an email that was sent to its clients and ended up in my mailbox, FXCM proposes that clients wishing to keep hedging to move their accounts to FXCM, claiming that its solicitation is a result of its understanding that certain clients understand the risk and costs involved in such activity. FXCM UK, by the way, is an FSA regulated entity which is probably a more normal regulator than CFTC/NFA.
On another note: while FXCM never openly stated that it’s a market maker (not that there’s anything illegal with it) and typically markets only its non-dealing desk service, yesterday it published a job ad for a trader who would “continuously track firm’s net positions against its client base.”
In case FXCM decides to remove the ad, below is as it was published:
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Job Description: Senior FX trader @ Forex Capital Markets
AJE Reference Number: 518676872
Job Title: Senior FX trader
Company: Forex Capital Markets
Location: US – NY, New York, 10005
Job Start/End Date: not provided
Job Type: Regular
Job Classification: Full Time
Hours/Week: 40 hrs/week
Salary Range: not provided N/A
Education: Bachelors Degree
Required Degree/Formal Training: not provided
Required Licenses/Certificates: not provided
Experience: Mid-Career (2 – 15 years)
Company Homepage: http://www.fxcm.com
A Senior Foreign Exchange Trader position is available at Forex Capital Markets, LLC in New York. A successful candidate will become a market maker on 24-hour spot FX trading desk; will work directly with managing partners to continuously track firm’s net positions against its client base; will develop and implement superior trading strategies based on changing market conditions, firm needs, and client performance; will trade a new CFD product and hedge the relevant risk; will manage a team of 10 employees; will hire and train new traders; will head an overseas expansion project, FXCM India with a customer and employee base that is 60% Hindi speaking. Candidates should have BS degree in Business/Finance and minimum 2 years of experience in FX trading. Proficiency in Hindi language is required.
Job Benefits: not provided