New Financial Reporting Requirements for NFA Forex Dealer Members
Some new rules for 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 brokers folks. It seems that every other month some new legislation and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term is coming out. These latest ones are relatively minor, more like a slight tweaking.
The CFTC's new Part 5 Regulations, which impose additional financial reporting obligations on certain Futures Commission Merchants (FCMs) that act as the counterparty to retail forex transactions and Retail Foreign Exchange Dealers (RFEDs), became effective on October 18, 2010. As a result, FCMs and RFEDs who are Forex Dealer Members (FDMs) of NFA must include the following additional information on the Exchange Supplementary Schedule of the CFTC Form 1-FR-FCM financial filings as of October 31, 2010:
- Gross revenue from forex transactions with retail customers;
- Total net aggregate notional value of all open forex transactions in retail customer and non-customer (not proprietary) accounts;
- Total aggregate retail forex assets;
- Total amount of retail forex obligations; and
- Retail forex related minimum dollar amount requirement.
On the front end, i.e. for us forex traders, this piece of news isn’t going to directly affect us, but it’s nice to know non-ECN brokers are being held to account, more and more. If I’m reading this right, these new reporting requirements don’t apply to ECNs, since they’re not acting as a counterparty.
Some new rules for 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 brokers folks. It seems that every other month some new legislation and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term is coming out. These latest ones are relatively minor, more like a slight tweaking.
The CFTC's new Part 5 Regulations, which impose additional financial reporting obligations on certain Futures Commission Merchants (FCMs) that act as the counterparty to retail forex transactions and Retail Foreign Exchange Dealers (RFEDs), became effective on October 18, 2010. As a result, FCMs and RFEDs who are Forex Dealer Members (FDMs) of NFA must include the following additional information on the Exchange Supplementary Schedule of the CFTC Form 1-FR-FCM financial filings as of October 31, 2010:
- Gross revenue from forex transactions with retail customers;
- Total net aggregate notional value of all open forex transactions in retail customer and non-customer (not proprietary) accounts;
- Total aggregate retail forex assets;
- Total amount of retail forex obligations; and
- Retail forex related minimum dollar amount requirement.
On the front end, i.e. for us forex traders, this piece of news isn’t going to directly affect us, but it’s nice to know non-ECN brokers are being held to account, more and more. If I’m reading this right, these new reporting requirements don’t apply to ECNs, since they’re not acting as a counterparty.