FXDD has become the latest retail-oriented forex broker to become approved as a ‘Swap Firm’ with the NFA. The registration follows similar actions from GAIN Capital and FXCM (plus GFT before they merged with GAIN) earlier this year. The swap dealer designation allows firms to provide liquidity to the new swap execution facility (SEF) platforms that are becoming mandatory for trading of various types of swap products. Currently, there are over 90 firms that have been approved by the NFA as designated swap dealers.
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For FXDD, the swap designation can be ascribed to the broker’s positioning itself for possible changes in the regulatory climate of FX trading. It also suggests that FXDD continues to be planting itself within the NFA’s jurisdiction, with no immediate plans to exit the US.
The Forex Magnates London Summit provided a platform to discuss with FXDD the U.S. market, the settlement between the NFA, CFTC, and FXDD in 2013, and whether the broker believes that the NFA could adapt an ‘agency only’ model requirement for retail brokers. In addition to agency requirements, the possibility of all retail FX moving on-exchange. John Corbett, Director of Marketing at FXDD, conveyed that the market could go in any of multiple directions. Corbett explained that FXDD was putting itself in position where it would be an active broker in the US market regardless of where regulations take the market.