Weekly Webinar: 1st on Forex - The Week Ahead
by Jerry Furst
November 09, 17:00 GMT
Register for the webinar
This guys is doing a great job keeping us all more than well up-dated about the latest goings in the Retail Forex Industry. I’m talking about Michael Greenberg and his site Forex Magnates.
Worth following him
Francesc
FXCM releases Financial Data for Q3 2009: Over $115 million in capital
by
Hi everyone
Forex.com (Gain Capital) announced on Friday the implementation of the new NFA requirements one week earlier as FXCM did last week.
Francesc
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Effective Monday, November 30, 2009, a new NFA compliance rule will go into effect for US regulated firms. This rule will require a minimum 1% margin requirement for the major currencies, capping the available leverage at 100:1. The new margin requirement for all other currencies will be 4% or 25:1 leverage.
In anticipation of this rule change, we will be changing the margin settings for all customers’ accounts on Monday, November 23, 2009 at 5 pm ET.
We will be emailing customers over the next few days notifying them of this change. Customers that wish to continue to utilize 200:1 leverage, may transfer their to FOREX.com UK.
Should you have any questions, or if you are unsure of how this change will impact your GAIN Capital account, please contact Alexia Iatridis at 1.908.212.3909, or at aiatridis@gaincapital.com or you can speak to your Relationship Manager.
Hi everyone
Following the steps of FX Solutions and GFT, FXCM the leading retail FX broker is implementing too NFA’s new requirements.
New requirements should be in place on November 30th, but FXCM is putting them in place one week early and will take effect on November 22.
Important New Margin Requirements for All FXCM Micro Clients
Important New Margin Requirements for All FXCM Clients (Standard Accounts)
Francesc
A few days ago, I announced here that FX Solutions was announcing they were reducing leverage offered to clients to adjust themselves to New NFA Regulation.
Today is the turn of GFT Forex
Francesc
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Dear Valued Customer,
We’ve recently learned of new leverage requirements set forth by the NFA that will change the leverage amounts available to customers. As of November 30, 2009, all major currency pairs will have a maximum leverage of 100:1 and exotic currency pairs will have a maximum leverage of 25:1.
Major pairs include any pair with two of the following currencies: US dollar (USD), British pound (GBP), Swiss franc (CHF), Canadian dollar (CAD), Japanese yen (JPY), Euro (EUR), Australian dollar (AUD, New Zealand dollar (NZD), Swedish krona (SEK), Norwegian krone (NOK), Danish krone (DKK)
All other pairs are considered exotic.
……..
Best Regards,
GFT
Watch it with your girlfriend/wife and share the experience 
Francesc
Hi everyone
This is the first notification I’ve received from a US based broker adjusting leverage to NFA’s new requirements. Maybe it is not the first one to make the move, but no doubt many more will follow.
Meanwhile, the fly to UK or Australia branches from US based clients continues
NFA…, are you sure that you are ruling to protect customers interests?
Sometimes, it seems to me that you a trying to protect the backyard of Futures firms… silly right?
Francesc
Important Notice: Reduction in Leverage
On November 30, 2009, the NFA will implement amendments to the Financial Requirements Sections 11 and 12. This amendment will limit leverage to 100:1 for U.S. held accounts on the ten major currencies and 25:1 on all others. Currently all instruments that FX Solutions offers will be leveraged at 100:1 when the rule is implemented. At the close of business on November 30, 2009, ALL open positions held with a FX Solutions accounts will be margined at 100:1.
The Majors Include: British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD), Japanese Yen (JPY),Euro (EUR),Australian Dollar (AUD) and New Zealand Dollar (NZD)
While using low margin requirements can sharply increase the percentage profit or loss potential, FX Solutions is able to provide an alternative to the new reducing leverage amendments.
FX Solutions customers have the option of continuing all current functionality by seamlessly opening an additional account with FX Solutions Australia or FX Solutions UK. These alternatives will allow you to:
* Maintain leverage up to 400:1 on Forex and up to 200:1 on Spot Metals†
* Continue to trade on a ticket-based system
* Place stop loss and limit orders on individual trades
* Utilize Hedging functionality††
Some customers will receive this email over the next few days. Below are the links for customers to create an additional account with FX Solutions AU and UK. Customers using the forms below must have no open positions; for customers with open positions they do not have to close their positions at this time. All new accounts created using the forms below will keep the broker assigned to that account.
Best Regards,
FX Solutions
†FX Solutions asks that you consider the risks associated with increasing your leverage. A relatively small market movement will have a proportionally large impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin and you may be required to deposit additional funds to cover a short margin position.
††When employing hedging as a trading strategy, traders should be aware of the costs associated with offset trading. Although hedged trades are opposite of each other, the trades will be treated as independent trades. Traders will pay the entire spread twice (buying at the high end of the spread and selling at the low end). Additionally, at the end of day, rollover/interest policy applies to both trades involved in the hedge; this may result in paying or in some cases receiving interest on both the long and short position. A hedged trade may limit your ability to benefit from market movement.
CFTC Charges Florida Resident and His Panamanian Corporation with Fraud and Misappropriation
At least $16.4 million in customer funds solicited by making false statements, with more than $2 million misappropriated for personal use.
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of an enforcement action against Trader’s International Return Network (TIRN), a Panamanian corporation, and its president David Merrick of Apopka, Fla., charging them with solicitation fraud and misappropriation of customer funds involving at least $16.4 million.
According to the CFTC complaint, filed on October 14, 2009, in the U.S. District Court for the Middle District of Florida, TIRN represented itself as a “private investment club” that provided various investment services, including foreign currency (forex) investing, through its purported Real Century forex trading program. As alleged, the defendants accepted at least $16.4 million from customers to participate in TIRN’s investment program; however, no customer funds were invested as described on the TIRN website and in TIRN’s written materials.
Full Story
Hi everyone
Yesterday, the U.S Commodity Futures Trading Commission (CFTC) released financial data for Futures Commission Merchants (FCM) for the month of August 2009.
http://www.cftc.gov/marketreports/financialdataforfcms/index.htm
Oanda leads the retail industry in terms of excess of net capital with a pile of $142mio, followed by Gain Capital, Global Futures & Forex (GFT) and Forex Capital Markets (FXCM).
We can observe with satisfaction that IKON Global Markets improves its ranking and gains 3 positions, leaving the honor of being the less capitalized brokerage firm in the US to Easy Forex US with an excess of net capital of almost half a million.
On the negative side, to highlight the fall of the net capital of both GFT - from 65 mio to 56 - and Gain Capital - from 67 to 61.
Minimum Net Capital = $20 million
Easy Forex US $20,490,925 (Excess Net Capital $490,925)
Advanced Markets $20,650,540 (Excess Net Capital $650,540)
Alpari US $21,409,108 (Excess Net Capital $1,409,108)
Ikon Global Markets $21,226,238 (Excess Net Capital $1,226,238)
MB Trading $21,990,965 (Excess Net Capital $1,990,965)
Forex Club Financial Company $24,664,036 (Excess Net Capital $4,664,036)
Capital Market Services LLC - CMS Forex $25,428,571 (Excess Net Capital $5,428,571)
Peregrine Financial Group Inc - PFG $33,291,134 (Excess Net Capital $13,291,134)
InterbankFX $35,064,682 (Excess Net Capital $15,064,682)
FX Solutions $45,800,258 (Excess Net Capital $25,800,258)
Forex Capital Markets LLC - FXCM $67,728,355 (Excess Net Capital $47,728,355)
Global Futures & Forex Ltd - GFT Forex $76,429,474 (Excess Net Capital $56,429,474)
Gain Capital Group LLC $81,436,967 (Excess Net Capital $61,436,967)
Oanda Corporation $162,306,790 (Excess Net Capital $142,306,790)
Francesc
COMPLAINT:
On June 10, 2009, NFA issued a Complaint alleging that ACM failed to file required financial reports in a timely manner. The Complaint also alleged that Anderson failed to supervise ACM’s operations.
ANSWER:
On June 30, 2009, Anderson filed an Answer to the Complaint in which he denied the material allegations contained therein.
DECISION:
On September 25, 2009, Anderson was ordered to refrain from being a principal of an NFA Member for one year; or, alternatively, if Anderson elects to become a principal of an NFA Member during the one-year period, then he was ordered to pay a $5,000 fine to NFA within thirty days of becoming a principal.
Notice I-09-18
September 24, 2009
Effective Date of Amendments to NFA Financial Requirements Sections 11 and 12 and the Interpretive Notice Regarding Forex Transactions
NFA has received notice that the Commodity Futures Trading Commission has approved changes to NFA Financial Requirements Sections 11 and 12 and related changes to the Interpretive Notice titled “Forex Transactions.” The amendments adopt an alternative net capital requirement for Forex Dealer Members (FDMs) and eliminate the existing exemption from the security deposit requirement. These changes will become effective on November 30, 2009.
The amendments to Section 11 revise the existing alternative net capital requirement that is based on an FDM’s liabilities to customers.1 As of November 30, 2009, the alternative requirement is $20 million plus 5% of the amount of customer liabilities over $10 million. FDMs that exclusively use straight-through-processing for their customer transactions are exempt from this alternative requirement and need only maintain the $20 million minimum (unless the firm is subject to a higher requirement under FR Section 1).
The amendments to Section 12 eliminate the existing security deposit exemption for FDMs that maintain 150% of their required net capital. This means that, beginning on November 30, 2009, all FDMs must collect a customer security deposit of at least 1% for the currencies listed in Section 12 and at least 4% for all other currencies.2
NFA’s submission letters to the Commodity Futures Trading Commission include of the revised language and more detailed descriptions of the changes. You can access electronic copies of the February 23, 2009 submission letters at http://www.nfa.futures.org/news/PDF/CFTC/FRSec11_IntNotc021909.pdf (for the changes to Section 11) and http://www.nfa.futures.org/news/PDF/CFTC/FRSec12_IntNotc021909.pdf (for the changes to Section 12).
Questions concerning these requirements should be directed to Valerie Kretschmer, Manager, Compliance (vkretschmer@nfa.futures.org or 312-781-1290) or to Sharon Pendleton, Director, Compliance, (spendleton@nfa.futures.org or 312-781-1401).
Francesc Riverola,