Tradeview Forex Offers Hedging Alternative

by Michael Greenberg
Tradeview Forex Offers Hedging Alternative

Ever since CFTC enacted Compliance Rule 2-43(b) which prohibits hedging, brokers have been seeking ways to adhere to the Regulation but still please their "hedging" customers.

  • FXDD told their customers that they were not making any changes to their platform because they were still discussing the new changes with NFA.
  • FX Solutions offered hedging using a multiple account strategy.
  • FXCM and GAIN Capital Markets suggested that their customer move their money to their offshore subsidiaries.

Now Tradeview Forex, a division of IKON Global Markets, has informed their clients of their interpretation of the new regulation. Tradeview focused on the sentence, "FDMs may not carry offsetting positions in the same account if either of those positions was established after May 15, 2009."

On Monday, May 18th, Tradeview modified all their Demo and Live accounts so that customers can still maintain both long and short position on the same currency pair on an intraday basis, but at the close of the trading day (5:00 PM EST) any long or short positions are matched and closed by the system. This results in a net position for the trader and the offseting positions are not "carried".

It will be interesting to see how this new interpretation fares.

Ever since CFTC enacted Compliance Rule 2-43(b) which prohibits hedging, brokers have been seeking ways to adhere to the Regulation but still please their "hedging" customers.

  • FXDD told their customers that they were not making any changes to their platform because they were still discussing the new changes with NFA.
  • FX Solutions offered hedging using a multiple account strategy.
  • FXCM and GAIN Capital Markets suggested that their customer move their money to their offshore subsidiaries.

Now Tradeview Forex, a division of IKON Global Markets, has informed their clients of their interpretation of the new regulation. Tradeview focused on the sentence, "FDMs may not carry offsetting positions in the same account if either of those positions was established after May 15, 2009."

On Monday, May 18th, Tradeview modified all their Demo and Live accounts so that customers can still maintain both long and short position on the same currency pair on an intraday basis, but at the close of the trading day (5:00 PM EST) any long or short positions are matched and closed by the system. This results in a net position for the trader and the offseting positions are not "carried".

It will be interesting to see how this new interpretation fares.

About the Author: Michael Greenberg
Michael Greenberg
  • 1439 Articles
  • 56 Followers
About the Author: Michael Greenberg
  • 1439 Articles
  • 56 Followers

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