NFA Proposes Amendments to Board Count Reducing FX Dealers Quota
- The Retail Foreign Exchange Dealers and Swap Dealers will get reduced representation with five seats, down from the current seven
The National Futures Association has published a list of proposed amendments to the structure of the regulator’s board. Retail Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Dealers (RFEDs) who have been paired with Swap Dealers (SDs) in their quota representation on the board will lose two seats.
Current arrangements mandate seven board members to be designated to SDs and RFEDs. Starting from February 2016, the NFA is proposing a new quota principle which will cut the seats for the above mentioned financial institutions by two to a total of five.
The changes are part of a reduction to the total count of board members of the NFA. Futures Commission Merchants (FCMs), Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term Transaction Merchants (LTMs) and Introducing Broker (IBs) Representatives have been cut to a total of seven from previously nine.
The quota for IBs will remain unchanged when compared to the previous structure, with both workers who are required to maintain minimum adjusted net capital and those who aren’t holding one seat.
The representatives of Commodity Pool Operators have also been cut from five to four, while the public representatives on the board of the NFA have been reduced from eleven to a total of ten.
For the complete changes to the structure of the board, which are most likely due from February 2016, the full document published by the NFA can be read below.
The National Futures Association has published a list of proposed amendments to the structure of the regulator’s board. Retail Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Dealers (RFEDs) who have been paired with Swap Dealers (SDs) in their quota representation on the board will lose two seats.
Current arrangements mandate seven board members to be designated to SDs and RFEDs. Starting from February 2016, the NFA is proposing a new quota principle which will cut the seats for the above mentioned financial institutions by two to a total of five.
The changes are part of a reduction to the total count of board members of the NFA. Futures Commission Merchants (FCMs), Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term Transaction Merchants (LTMs) and Introducing Broker (IBs) Representatives have been cut to a total of seven from previously nine.
The quota for IBs will remain unchanged when compared to the previous structure, with both workers who are required to maintain minimum adjusted net capital and those who aren’t holding one seat.
The representatives of Commodity Pool Operators have also been cut from five to four, while the public representatives on the board of the NFA have been reduced from eleven to a total of ten.
For the complete changes to the structure of the board, which are most likely due from February 2016, the full document published by the NFA can be read below.