Comments on: NFA’s new regulation demands – A blow against traders, brokers or both? Part 1 (Anti-Hedging) http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/ Forex Magnates is the home of the Forex Elite providing up to date industry news coverage, commentary and scoops Sun, 12 Feb 2012 11:10:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Forexbody http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4784 Forexbody Mon, 13 Jul 2009 19:23:02 +0000 http://www.forexmagnates.com/?p=34#comment-4784 I believe that one day the NFA will wake up to find all US account have migratd to the UK or offshore, but do they realy care? I believe that one day the NFA will wake up to find all US account have migratd to the UK or offshore, but do they realy care?

]]> By: Forexbody http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4783 Forexbody Mon, 13 Jul 2009 19:21:10 +0000 http://www.forexmagnates.com/?p=34#comment-4783 It is not hard to go back to the good old says of trading feedom, If your broker already offered you to move your account to their UK branch then great, take the offer..if not find another broker who can do it for you. It is not hard to go back to the good old says of trading feedom, If your broker already offered you to move your account to their UK branch then great, take the offer..if not find another broker who can do it for you.

]]> By: CFTC doesn't want brokers to gamble with your money while it's deposited with them | Forex Magnates http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4782 CFTC doesn't want brokers to gamble with your money while it's deposited with them | Forex Magnates Wed, 27 May 2009 17:36:18 +0000 http://www.forexmagnates.com/?p=34#comment-4782 [...] on this issue – which beyond any doubt is for the traders – and not on other key issues such as Anti-Hedging and Anti-Pricing which would have ignited a much heated debate. Someone clearly wanted to avoid any [...] [...] on this issue – which beyond any doubt is for the traders – and not on other key issues such as Anti-Hedging and Anti-Pricing which would have ignited a much heated debate. Someone clearly wanted to avoid any [...]

]]> By: New Chairman of CFTC promisses even more stringent regulations to come | Forex Magnates http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4781 New Chairman of CFTC promisses even more stringent regulations to come | Forex Magnates Wed, 27 May 2009 08:14:23 +0000 http://www.forexmagnates.com/?p=34#comment-4781 [...] guess is that the Anti-Hedging and the Anti-Pricing requirements were only the tip of the iceberg and that soon I’ll follow [...] [...] guess is that the Anti-Hedging and the Anti-Pricing requirements were only the tip of the iceberg and that soon I’ll follow [...]

]]> By: NFA keeps forcing retail Forex brokers out of the US: Only 12 remain! | Forex Magnates http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4780 NFA keeps forcing retail Forex brokers out of the US: Only 12 remain! | Forex Magnates Fri, 22 May 2009 11:44:01 +0000 http://www.forexmagnates.com/?p=34#comment-4780 [...] NFA inventing new impractical requirements every couple of months and FXCM acquiring one broker’s customer base after another [...] [...] NFA inventing new impractical requirements every couple of months and FXCM acquiring one broker’s customer base after another [...]

]]> By: FX solutions offers a multi account hedging solution circumventing the NFA | Forex Magnates http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4779 FX solutions offers a multi account hedging solution circumventing the NFA | Forex Magnates Mon, 18 May 2009 05:08:56 +0000 http://www.forexmagnates.com/?p=34#comment-4779 [...] far we have seen 4 different brokers offer three different solutions to the NFA’s Anti-Hedging blow: FXCM and Gain ask clients to shift their funds to oversea subsidiaries, FXDD chose to fight NFA [...] [...] far we have seen 4 different brokers offer three different solutions to the NFA’s Anti-Hedging blow: FXCM and Gain ask clients to shift their funds to oversea subsidiaries, FXDD chose to fight NFA [...]

]]> By: CMS FX suddenly and with short notice reduces leverage from 1:400 to 1:100 and less | Forex Magnates http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4778 CMS FX suddenly and with short notice reduces leverage from 1:400 to 1:100 and less | Forex Magnates Tue, 12 May 2009 22:23:25 +0000 http://www.forexmagnates.com/?p=34#comment-4778 [...] timing seems a bit odd, given that the NFA’s Anti Hedging requirements are due on May 15th as well however they don’t seem to mention anything about [...] [...] timing seems a bit odd, given that the NFA’s Anti Hedging requirements are due on May 15th as well however they don’t seem to mention anything about [...]

]]> By: US Metaquotes brokers are in stress: will Metaquotes supply the NFA FIFO patch on time? | Forex Magnates http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4777 US Metaquotes brokers are in stress: will Metaquotes supply the NFA FIFO patch on time? | Forex Magnates Tue, 12 May 2009 09:50:43 +0000 http://www.forexmagnates.com/?p=34#comment-4777 [...] you have been following my posts I reported that NFA extended its FIFO (first-in, first-out) requirements deadline to July 31st, [...] [...] you have been following my posts I reported that NFA extended its FIFO (first-in, first-out) requirements deadline to July 31st, [...]

]]> By: Tom Herod http://forexmagnates.com/nfa%e2%80%99s-new-regulation-demands-%e2%80%93-a-blow-against-traders-brokers-or-both-part-1-hedging/#comment-4776 Tom Herod Sat, 02 May 2009 14:59:07 +0000 http://www.forexmagnates.com/?p=34#comment-4776 I read Thomas Sexton's letter to CFTC on December 9, 2008 explaining NFA's rationale for the Compliance Rule 2-43(b): Offsetting Transactions. In it he stated, "Ten of 17 FDMs surveyed offer the strategy to their customers, although for most it is a very small part of their business. Of these ten, six actively promote it on their web sites, while another one merely indicates it is available. Several of the FDMs told NFA that they had not offered the "hedging" strategy until their customers requested it. Although many of the FDMs admit that customers receive no financial benefit by carrying opposite positions, some FDMs believe that if they do not offer the strategy they will lose business to domestic and foreign firms that do." If the FDMs polled by NFA thought that hedging was important to either their self interests or their customers, I think they would have taken a more vigorous position opposing NFA's proposed changes. I really think the horse has left the barn and that the faint public outcry I am hearing is striving after wind. If CFTC's policies are going to be changed, the objections need to come from the FDMs, whose opinions carry more weight than the retail trading public. In light of the current economic climate there is mounting pressure on CFTC to tighten its regulatory reins. I think we can expect more of the same domestically and (if you're paying attention) also abroad. I read Thomas Sexton’s letter to CFTC on December 9, 2008 explaining NFA’s rationale for the Compliance Rule 2-43(b): Offsetting Transactions. In it he stated, “Ten of 17 FDMs surveyed offer the strategy to their customers, although for most it is a very small part of their business. Of these ten, six actively promote it on their web sites, while another one merely indicates it is available.

Several of the FDMs told NFA that they had not offered the “hedging” strategy until their customers requested it. Although many of the FDMs admit that customers receive no financial benefit by carrying opposite positions, some FDMs believe that if they do not offer the strategy they will lose business to domestic and foreign firms that do.”

If the FDMs polled by NFA thought that hedging was important to either their self interests or their customers, I think they would have taken a more vigorous position opposing NFA’s proposed changes. I really think the horse has left the barn and that the faint public outcry I am hearing is striving after wind. If CFTC’s policies are going to be changed, the objections need to come from the FDMs, whose opinions carry more weight than the retail trading public.

In light of the current economic climate there is mounting pressure on CFTC to tighten its regulatory reins. I think we can expect more of the same domestically and (if you’re paying attention) also abroad.

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