If you have been following my posts I reported that NFA extended its FIFO (first-in, first-out) requirements deadline to July 31st, 2009. This leaves US brokers with 2.5 months to patch their platforms and make sure they comply with NFA or face charges.
As we know, the market is more or less equally divided between self-developed systems (FXCM, MB Trading) and Metatrader (FXCM, IBFX, Alpari). The self designed systems are easier to patch up for the new requirements simply because brokers control the R&D themselves.
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The biggest problem is with Metaquotes because it’s a software provider for so many brokers and it now needs to work in full speed to make sure its software is up to date and this can be a big problem. Releasing a fully functional software patch in such tight schedule and for so many operating brokers in parallel can be a difficult and daunting task. Imagine what would happen if the patch isn’t a 100% error proof…
Increasing number of brokers who solely depend on MT4 – like IBFX and Alpari express their concerns behind the doors and so do many MT4 independent develops (EAs etc). FXCM is in better position as most of its business is done on its own platform.
So with this race against the clock who’s going to win – NFA or the brokers?