Interesting…. Forex Street is even a good keyword too

Francesc

Free List of The Best Forex Keywords for AdWords PPC Campaign
Here’s another completelly free stuff from me (as promised before) – the list of forex related keywords for your PPC campaigns.

Keywords (the keyword as it would appear in your PPC program)
Price – (Estimated Average Cost Per Click)

forex trading system
$0.93

automated forex trading
$0.93

forex day trading
$0.93

learn forex trading
$0.93

forex trading software
$0.93

…………

forex street
$0.77

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This issue seems to be related to Crown Forex S.A bankrupcy…

Francesc

Investors sue to get $5M back from Twin Cities entities
The investors want $5 million back from a collection of Twin Cities entities and say hundreds of other investors may be at risk.
By DAN BROWNING, Star Tribune

An attorney for a group of Ohio investors told a federal judge in Minneapolis Friday that “potentially hundreds or more individuals around this country and abroad” who gave their life savings to a collection of Twin Cities investment entities have been unable to get their money back or even find out where it’s being held.

Nine Ohio investors filed suit in Minneapolis July 7 seeking to recover nearly $5 million they invested in a currency arbitrage program. So far, attorney John Harper III said he’s only been able to find about $1.2 million in several bank accounts that were subject to two emergency asset freezes imposed in the case.
Full Story

New Update: Minn. investors learn money trail has weird turns by Star Tribune

Previously published here about this issue:
Forex - Investors try to get their money back

Hi everyone

I just came back from a week of in rainy Ireland - I went there to view U2 at Croke Park and make a small tour around this beautiful island - and I got in my e-mail NFA’s news release about Interbank FX’s settlement fine, and the official statement of the firm regarding this issue.

A few minutes ago I published here NFA’s news release, so here you have Interbank FX’s official statement.

Francesc

NFA Press Release Response

INTRODUCTION
Interbank FX is dedicated to excellence in meeting our compliance responsibilities. As a company we are continually reviewing and improving our compliance policies, procedures and safeguards for the benefit of our current and prospective customers. Moreover, in 2008 Interbank FX recruited, directly from NFA, a new Compliance Director and Compliance Manager. Interbank FX believes that we lead the industry now in our compliance with applicable regulatory duties and specifically would like to address the complaint recently issued by the NFA. The allegations contained therein pre-dated the hiring of Interbank’s new compliance team leaders and significant changes in nearly every aspect of our compliance policies.

Neither admitting nor denying any of the allegations in NFA’s complaint, Interbank FX has addressed any and all concerns contained therein and has settled the matter with the NFA. Specifically, Interbank FX would like to address the following three items contained within NFA’s complaint:

1. Non-Member Solicitor Supervision:

BACKGROUND

During the period referenced in the NFA’s complaint, Interbank FX maintained procedures to review all third party solicitor promotional material and to correct deficiencies in the materials. Among other things, NFA alleged in the complaint that Interbank FX failed to ensure that one of its non-NFA member solicitors, Global Profit Systems International (“Global”), had appropriate promotional material.

WHAT WE DID
* In November, 2007, Interbank FX terminated its relationship with Global when it failed to bring its promotional material into compliance.
* Interbank FX’s compliance policies and procedures have since been strengthened in regards to the stringency with which we review solicitors’ promotional material and post-review enforcement of our recommendations.
* Interbank FX adopted a policy in December 2007, to refuse to do business with U.S. solicitors unless they are members of the NFA.

GOING FORWARD
Interbank FX does business with only those U.S. solicitors who are members of the NFA and strives to efficiently enforce strict promotional material compliance standards for all U.S. and foreign solicitors.

2. Anti-Money Laundering Program

BACKGROUND
Among other things, NFA alleged in the complaint that Interbank FX failed to file Suspicious Activity Reports (“SAR”) in response to “red flags” from a non-NFA member, Solicitor A.

WHAT WE DID
* Interbank FX terminated Solicitor A in December 2007, when it became aware that Solicitor A had misled the company with regard to websites he operated.

* Interbank FX filed a SAR-SF report with FinCEN when it became apparent to Interbank FX that such a report was necessary.

* Interbank FX currently refuses to do business with U.S. solicitors unless they are members of the NFA.

GOING FORWARD
Interbank FX, neither admitting nor denying any of the allegations in the complaint, has since developed a more robust and rigorous AML program and strives to be a leader in AML compliance.

3. Interbank FX Trading System

BACKGROUND
NFA’s complaint alleged that Interbank FX experienced multiple instances during which customers may have been prevented or limited from accessing the trading system. Additionally, NFA alleged that Interbank FX failed to properly notify customers of these instances.

WHAT WE DID
* During the period in question, Interbank FX had limited methods of communicating system interruptions to customers. However, since then, Interbank FX has developed and employed a new system of notification by which customers are notified promptly and effectively of all system interruptions which could potentially affect their trading.

* Almost all of the “incidences” referred to in the NFA’s complaint were incidences involving required daily maintenance. Since September 11, 2008, this daily maintenance is now consolidated into a fully disclosed customer maintenance window consistent with financial industry standards. Even considering these daily maintenances, system-up time during the period referenced in the complaint exceeded 99.9%.

* Additionally, in 2009, Interbank FX has continued to demonstrate its trading system efficiency and has experienced 99.99% server up-time (outside of the maintenance window).

GOING FORWARD
Interbank FX, neither admitting nor denying any of the allegations in the complaint, has addressed and enhanced its procedures to ensure optimal performance in managing our electronic trading systems.

CONCLUSION
Interbank FX is committed to being a leader in our industry for excellence in compliance matters. As we move forward from the unfortunate events which led to the NFA’s complaint, we thank the NFA for helping to promote a healthy trading environment for our customers and the industry as a whole. We look forward to continuing our growth as your FOREX Dealer Member consistent with our obligations to you under NFA rules and the even more rigorous standards we have set for ourselves.

NFA fines Utah forex dealer member, Interbank FX LLC and its principal $225,000

July 30, Chicago - National Futures Association (NFA) has ordered Interbank FX LLC (Interbank) and its principal, Todd Crosland to jointly pay a fine of $225,000. Interbank is a Futures Commission Merchant and Forex Dealer Member of NFA, located in Salt Lake City, Utah. The Decision, issued by NFA’s Business Conduct Committee, is based on an NFA Complaint filed in July 2009 and settlement offers submitted by Interbank, Crosland and Amanda Albretsen, also a principal and former compliance director of Interbank.

The Committee found that Interbank, Crosland and Albretsen failed to implement its anti-money laundering (AML) program and failed to adequately supervise its electronic trading system. Additionally, the Committee found that Interbank, Crosland and Albretsen failed to adequately supervise the solicitation of non-Member solicitors who used deficient promotional material. The Committee also found that Crosland failed to supervise Interbank’s activities.

Interbank and Crosland must also submit to NFA within 180 days a final independent review of its electronic trading platforms conducted by an outside party to ensure that Interbank’s electronic trading platforms are in compliance with NFA requirements. The charges against Albretsen will remain open for one-year and will be dismissed if Albretsen is not charged by NFA for failure to supervise during the one-year period.

The complete text of the Complaint and Decision can be found on NFA’s website (www.nfa.futures.org)

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.
Case Summary

Hi everyone

I was surprised today to see that Ingot Brokers web site had been removed and it is now a one standing page site. It seems they are freezing any activity to get new clients on board until they get the banking license.

http://www.ingotbrokers.com/

I do not know if this important change in Ingot’s web site was made today, yesterday or a month ago, but I just found it today and I thought it is important enough to highlight it here.

In June 20th 2008, Mr. Richard Bleich, Member of the Board at Ingot Brokers already expressed in this blog Ingot’s will to go for Switzerland license to operate in the Forex Market.

Open letter to FXstreet’s Swiss brokers - Ingot Brokers response

Here you have the text that today appears at Ingot Brokers web site. It is in French. My staff made a translation to English for you:

Dear Customers,

On January 1st 2009, the three authorities composed of the Federal Office of Private Insurance (FOPI), the Swiss Federal Banking Commission (SFBC) and the Supervisory Authority of Laundry, Anti-Money (LBA AdC), gathered under the solely entity of Swiss Financial Market Supervisory Authority (FINMA).

INGOT Brokers, already as a member of ARIF, has made an important strategic decision to concentrate its activities in Switzerland and, to this end, has launched an application to Swiss Financial Market Supervisory Authority (FINMA) to obtain a license trading of Real Estate.

We believe that this is a very positive development that will enable us to provide professional services to our future customers in an environment that we highly value. A new website incorporating our future services and benefits of operating in Switzerland, will be developed and installed when receiving approval from the Swiss authorities.

We are grateful to our customers and their understanding and support of this important step forward for our mutual trust, integrity and service.

National Futures Association has permanently barred from NFA membership Foreign Trade Bank Securities Inc, an alternative investment manager with offices in Southern California.

The Complaint alleged that Foreign Trade Bank and Wassink failed to provide certain records requested by NFA in the course of NFA’s most recent audit of Foreign Trade Bank, including records relating to the FTB Fund LP (”FTB Fund”), which is a Commodity Futures Trading Commission (’CFTC) Regulation 4.13(a)(4) exempt commodity pool operated by Foreign Trade Bank. The Complaint charged Foreign Trade Bank and Wassink with violations of NFA Compliance Rule 2-5.

NFA also also ordered that William Brian Wassink, principal of FTB, to be withdrawn from NFA associate membership and not reapply for NFA membership or associate membership or act as a principal of an NFA member for a period of three years. If after the expiration of the three year membership bar, Wassink reapplies for NFA membership, he shall pay a $5,000 fine. This Decision becomes effective on August 5, 2009.
Case Summary

Individual Investors Flock to Currencies
By The Wall Street Journal

Investors have sold stocks, fretted over the value of U.S. debt and switched savings accounts from one bank to another over the past year, but individual investors in foreign exchange have been far from crisis mode.

Even as volumes have been declining among institutional currency investors, the individual-investor side keeps increasing.

The collapse of Lehman Brothers had no negative effect on individual-investor currency traders, but presented more opportunities. This has been the product of historically high levels of volatility in exchange rates and new technology that has offered an alternative to stocks.

“Even when it sounded like the world was going to end, [individual investors] continued to see they could make some money in foreign exchange … even retail, who usually leave the market in these periods,” said Jonathan Butterfield, director of communications for currency settlement firm CLS Group in London.
Full Story

FXstreet has finally done what it should have had to do a long time ago, that is to create a Forex Tools for traders.
All this years tools have been difficult to find at FXstreet.com but very used instead, so it was the time to give them visibility and give them a location.

So the brand new Tools section is here

http://www.fxstreet.com/forex-tools/

Check out the brand new features:

1. Margin Calculator
http://www.fxstreet.com/forex-tools/margin-calculator/ to compute the margin you need to hold open positions.

2. Carry Trade Calculator
http://www.fxstreet.com/forex-tools/carry-trade-calculator/ to buy and sell with the highest interest rate. This tool helps you to capture the price appreciation or depreciation in a currency while also profiting from the interest differential.

3. Profit Calculator
http://www.fxstreet.com/forex-tools/profit-calculator to test different trading scenarios, enabling you to project the amount of profit or loss that a potential trade may be worth.

4. Spread Cost Calculator
http://www.fxstreet.com/forex-tools/spread-cost-calculator/ to Get a better spread management. This tool allow any trader to quantify the spread impact depending on your trading style.

And these are just a few. Up to 13 tools that you could use for your trading.

Check it out and give me your feed-back… are we missing any important tool?

Francesc

The Financial Services Authority (FSA) has today published plans to create a consistent and more transparent framework for calculating financial penalties which could mean some fines treble in size.

The new plans reflect the FSA’s determination to change behaviour and address concerns that firms are repeatedly failing to improve standards (e.g. in relation to mis-selling to consumers and market misconduct). They will also ensure that fines better reflect the scale of the wrongdoing and that any profits made from the breaches are clawed back.

Under the new proposals, fines will be linked more closely to income and be based on:

* Up to 20% of the company’s income from the product or business area linked to the breach over the relevant period;
* Up to 40% of an individual’s salary and benefits (including bonuses) from their job relating to the breach in non-market abuse cases;
* A minimum starting point of £100,000 for individuals in market abuse cases.

The total fine imposed will also take into account other factors, such as the desired deterrent effect and any settlement discount.

Margaret Cole, director of enforcement at the FSA, said: “These proposals are an important step in pushing forward our ethos of credible deterrence. By hitting companies and individuals in the pocket where it hurts, the fines will be a stark warning to others on what they can expect to pay for flouting our rules. Moving to this new framework will enable our enforcement policy to continue making a real difference to consumers and to changing behaviour in the financial services sector.”

The full framework will consist of the following steps:

1. Removing any profits made;
2. Setting a figure to reflect the nature, impact and seriousness of the breach;
3. Considering any aggravating and mitigating factors;
4. Achieving the appropriate deterrent effect;
5. Applying any settlement discount.

This approach is the latest stage of the FSA’s credible deterrence strategy and will apply to all enforcement actions including against firms, individuals and listed companies.

The consultation will close on 21 October 2009 and any new policy is likely to apply to breaches committed after February 2010.

CP09/19: Enforcement financial penalties

The news is from July 6th but it is important… so better publish her late than never

Francesc

Japan’s forex margin-limit plan looms over brokerages
By Lisa Twaronite, MarketWatch
TOKYO (MarketWatch) — Japan is planning to set limits on how much foreign-exchange investors can buy on margin, a move making news in a country where forex trading is something of a national pastime and which could put the squeeze on the already competitive forex brokerage business.

Last month, the Financial Services Agency announced the plan as a move to protect the proverbial “Mrs. Watanabe” — the collective nickname for Japan’s retail investors, in a country where housewives are often in charge of managing the family budget and investing savings. Some of those housewives trade foreign currencies on margin, meaning they trade — and sometimes lose — more money then they are initially required to commit.

The FSA unveiled a plan to curb speculative trading in two stages, in order to spread out and neutralize any market impact. The plan calls for the leverage cap to be set at 50 times the amount of principle cash committed as early as the summer of 2010, and then lowered to 25 times the following year.
Full Story

Update: Japan to impose cap on forex margin trade leverage by Reuters