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Amendments to NFA's Forex Requirements Including NFA's Jurisdiction Over Members Engaging in Forex Activities
- Basically NFA here extends its grip on more retail forex market participants than now. The Commodity Futures Trading Commission (CFTC) recently approved a number of amendments to NFA Requirements that govern the retail forex activities of NFA Members. These amendments to NFA Bylaws 301 and 306, NFA Compliance Rules 2-10, 2-36 and 2-39, Code of Arbitration Section 1 and Interpretive Notices 9053, 9058 and 9060 will become effective October 1, 2011.
NFA fines FXCM $2 million for slippage malpractices, FXCM will credit clients back
- Apparently Non Dealing Desk doesn't mean you get the best execution - NFA has just announced that it heavily fined FXCM for slippage malpractices. FXCM will pay $2 million directly to NFA and will compensate all customers who suffered from this practice since June 2008. The details of this case are not much different from the similar fine of $459k which NFA imposed on Gain Capital for using the Virtual Dealing plugin and similar slippage settings.
$30 Million Forex Ponzi Scheme unveiled
- Another one gets caught. The rise in Forex Ponzi schemes has been remarkable over the last two years. Culprits are misuing FX trading as a front, promising returns of over 10%. David R. Lewalski, formerly of Gainesville, Fla., pleaded guilty today to mail fraud in connection with his operation of a $30 million investment fraud scheme,
by
Adil Siddiqui
Swissquote publishes H1 2011 results, forex volume slightly up
- Swissquote, the Swiss Bank which recently acquired ACM, has just published its financial results for the first half year of 2011. The Bank improved in almost all metrics and its forex (what they call eForex) volume is up 5% from the first quarter. Swissquote's average monthly volume is now 35 billion CHF - equal to $42.4 Billion.
SEC and CFTC go after fleeing forex scammer Jeffery Lowrance
- Washington, D.C., July 15, 2011 – The Securities and Exchange Commission filed fraud charges Thursday against the CEO of a purported foreign currency trading firm, alleging he scammed hundreds of investors with false promises of high, fixed-rate returns while secretly using their money to fund his start-up alternative newspaper.
NFA sanctions Capital Market Services $75,000 mainly for multiple platform outages
- National Futures Association (NFA) has imposed a monetary sanction of $75,000 against Capital Market Services LLC (CMS), a Futures Commission Merchant located in New York, New York. The Decision, issued by NFA's Business Conduct Committee, is based on an NFA Complaint filed in May 2011 and a settlement offer submitted by CMS.
CySec fine GIGFX and FXYard for showing operations out of Cyprus despite not being regulated
- CySec has just announced (it's in Greek) that it had fined both GIFX and FXYard for stating that they operate out of Cyprus despite not being registered with the commission. CySec fined GIGFX 5,000 euro because it intended to submit application to CIF.
US Forex brokers profitability report for Q2 2011
- All brokers (except Tradestation) have updated their profitability numbers for the second quarter 2011. What clearly stands out is the drop in profitability experienced by clients of all brokers (with the exception of Advanced Markets - but its numbers are insignificant). On average clients' profitability dropped 4% since last quarter. When talking to brokers most of them stated the same reason for this - increased volatility during the quarter.
FXDD to continue offering non leveraged spot Gold and Silver trading
- Just like OANDA who announced two weeks ago that it will continue offering non leveraged spot metals trading FXDD too will continue offering this to its clients. It seems that US forex brokers are split between two options: discontinue spot metals trading at all (just like Gain did) or continue offering it on a non leveraged basis. Perhaps Gain rushed into a decision and will now reconsider given that two other US brokers (OANDA and FXDD) decided to keep offering this type of trading.
Tadawul FX will no longer accept US clients from July 8th
- This is an odd announcement to say the least, after all foreign forex brokers had to stop accepting US traders since October 2010... Apparently Tadawul FX has been accepting US clients until now and will only stop doing that after July 8th. Not sure exactly why they kept accepting US clients especially given their European regulation and given that CFTC is aggressively pursuing any offshore broker accepting US traders.
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