As New Rules Go Into Effect, Advanced Markets Swaps NFA For ASIC Regulation
- Deciding it’s not worth the $20,000,000 minimums; Advanced Markets has also officially withdrawn all of its licenses with the NFA. As of June 28th, the broker withdrew both its FCM license and NFA membership.
June 30th was decision time for Futures Commission Merchants (FCM) acting as counterparties to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term transactions. Under a new rule proposed last November, as of June 30th, registered FCMs with the NFA that also acted as counterparties to forex transactions were required to maintain minimum capital requirements of $20,000,000, similar to Forex Dealer Members (FDM). Several brokers that had downgraded their FDM license continued to operate in the US as FCMs with a lower requirement of $1,000,000. However, the new rules have caused these firms to decide whether to completely exit the US due to the increased capital requirements that went into effect for July.
Leaving the US earlier this year due to the requirements were Easy Forex and Forex Club, leaving only Advanced Markets, as the remaining firm that would be affected by the new rules. Deciding it’s not worth the $20,000,000 minimums; Advanced Markets has also officially withdrawn all of its licenses with the NFA. As of June 28th, the broker withdrew both its FCM license and NFA membership.
Updating Forex Magnates, CEO of Advanced Markets, Anthony Brocco told us that they have swapped out their US regulation with that of Australia; thereby becoming ASIC regulated on June 28th as well. He explained that ASIC offers regulation to foreign brokers, and as their business is wholesale Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term based, and not retail, it was a better match for them and their clients.
June 30th was decision time for Futures Commission Merchants (FCM) acting as counterparties to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term transactions. Under a new rule proposed last November, as of June 30th, registered FCMs with the NFA that also acted as counterparties to forex transactions were required to maintain minimum capital requirements of $20,000,000, similar to Forex Dealer Members (FDM). Several brokers that had downgraded their FDM license continued to operate in the US as FCMs with a lower requirement of $1,000,000. However, the new rules have caused these firms to decide whether to completely exit the US due to the increased capital requirements that went into effect for July.
Leaving the US earlier this year due to the requirements were Easy Forex and Forex Club, leaving only Advanced Markets, as the remaining firm that would be affected by the new rules. Deciding it’s not worth the $20,000,000 minimums; Advanced Markets has also officially withdrawn all of its licenses with the NFA. As of June 28th, the broker withdrew both its FCM license and NFA membership.
Updating Forex Magnates, CEO of Advanced Markets, Anthony Brocco told us that they have swapped out their US regulation with that of Australia; thereby becoming ASIC regulated on June 28th as well. He explained that ASIC offers regulation to foreign brokers, and as their business is wholesale Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term based, and not retail, it was a better match for them and their clients.