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Articles tagged by Nfa

NFA Creates Dedicated FX Compliance Rule The US National Futures Association (NFA) has adopted a new compliance rule (2-36) to govern foreign exchange transactions. NFA says that it has done so because, “Given the differences between off-exchange transactions and traditional exchange-traded futures and options, the board ...
NFA Raises Margin Levels on Sterling FX Trades In a move that might be seen as a little late, the National Futures Association (NFA) has instructed FX brokers to raise their margin requirements for clients trading sterling. Under NFA rules the 10 most traded currencies have be subject to a 2% margin on the notional value of outstanding contracts, while currencies outside of that group have had a 5% requirement. Noting that its rules allow the NFA to change margin requirements “under extraordinary market conditions”, the regulator says, “Given the recent events involving the UK exiting the European Union (Brexit) the executive committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs [forex dealer members] under Section 12 for currency pairs involving the British pound to a minimum of 5%. This increase is effective as of 5 p.m. (CST) on November 7, 2016 and remains in effect until further notice.”
Sexton New Head of NFA Thomas Sexton has been named as the National Futures Association’s new president and CEO, succeeding Dan Roth, who is retiring. The appointment is effective March 1 2017 and was unanimously endorsed by NFA’s board after what the association says was an “exhaustive” search process. Sexton is an existing member of NFA, which is a self-regulatory organisation for the US derivatives industry, having joined the association in 1991 as an attorney and subsequently being promoted to assistant general counsel in 1998, and to general counsel and secretary in 2001.
NFA Shifts FX Margins

23:39 November 28th 2016 in News, Brokers

NFA Shifts FX Margins

The US National Futures Association (NFA) has raised margin requirements on three currencies whilst cutting the margin required on one. The changes apply to NFA registered Forex Dealer Members (FDMs) in the US. The NFA cites recent volatility in the currency markets as well as the margin increases implemented by exchanges CME and ICE with respect to foreign currency futures involving the Mexican peso, Japanese yen, and New Zealand dollar, in notifying members to raise margins on those three currencies.
NFA Proposes Higher Transparency Rules for Retail Execution The National Futures Association (NFA) has submitted a proposed rule to the US Commodity Futures Trading Commission (CFTC) that will raise transparency levels for retail FX customers when executing in markets. The proposed rule change, which has the support of the five Forex Dealer Members (FDMs) under the NFA jurisdiction, will provide retail FX customers with a framework for obtaining execution information to review the quality of the execution the customer received compared to that of other customers at the FDM. Specifically, the rule states that an FDM will be required, upon the request of a customer regarding a specific executed FX transaction, to provide the customer with specified transaction data for the 15 transactions in the same currency pair that occurred immediately before and after the customer's transaction.