The CFTC has posted its financial data report for FCMs. Overall, total Retail Forex Funds dropped $15.9 million to $641.6 million. The drop in funds is in line with early reports of retail account profitability data which has showed a decline in profitable traders during Q1 2013 despite the increase in volatility. Interestingly, the biggest drop in funds was experienced by Interactive Brokers who has been consistently at the top of the quarterly profitability reports.
Among other individual names, Advanced Markets continues to hold over $20,000,000 in Net Capital, keeping in compliant with the NFA’s upcoming requirement for non-RFED FCM transacting forex trades with ECP counterparties to maintain $20,000,000 in capital, instead of the current $1,000,000 rule.
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The biggest news was the deletion of Easy Forex US. The broker had withdrawn as a Forex Clearing Dealer in 2010 but had remained licensed as a Forex Firm and FCM. As of February 24th, the broker withdrew all of its remaining licenses with the NFA, most likely as a result of the above mentioned increase in Net Capital Requirements that are slated to go into effect June 30th. With Easy Forex exiting, and Forex Club also deciding not to hold onto any of its registrations, with even its fxclub.com link no longer being an IB site to FXCM, at this point only Advanced Markets, and perhaps GFT which has registered as a Swap Dealer as it withdraws its RFED license appear to be the only firms that will be effected by the new NFA rules.
(Update – GFT’s financial figures were omitted from the first posting of this article as they are currently withdrawing their US FDM and RFED registration. However, as of late January they have registered as a Swap Dealer which could indicate they will continue to hold a presence in the institutional sector. According to the CFTC’s data, GFT had zero retail forex funds, and an Adjusted Net Capital of $4,199,290.)