At least this time new requirements proposed by the NFA make more sense. The NFA now requires that its members (US forex brokers) monitor its own social networks and portal more closely and filter user-generated content and comments.
This is what the NFA requires, and finally it’s a requirement that makes sense although I’m sure all brokers already implement this requirement by themselves:
“When inadequately monitored, social networking sites may contain misleading information, lure customers into trades that they would not normally make, or be used in an attempt to manipulate prices. If a Member or Associate hosts a blog, a chat room, or a forum where futures or forex are discussed, the Member or Associate is required to supervise the use of that community. This requires, at a minimum, that the Member or Associate regularly monitor the content of the sites it hosts, take down any misleading or otherwise fraudulent posts, and ban users for egregious or repeat violations. Not only are these actions required by NFA’s supervision rules, they are both common sense and common practice. Similar requirements apply to Facebook and other sites that allow others to post to the Member or Associate’s “wall” or other assessable area.”
What’s interesting is another proposed policy – employees monitoring. We all know that some employees are overzealous at making posts about their broker and can sometime make misrepresentations. New NFA requirement is here to tackle this issue:
“Members should have policies regarding employee conduct. These policies could require employees to notify the employer if they participate in any on-line trading or financial communities and provide screen names so that the employer can monitor employees’ posts periodically. Alternatively, the policy could simply prohibit participation in such communities. The Member must, of course, take reasonable steps to enforce whatever policies it adopts.”
CR2-29_IntNotc_re_OnLine_Social_Networking_120209 –
NFA is very overbearing. I can understand some of this, but be reasonable. This could open the door to unneeded sensoring.
I guess if it is referring to Social Sites THAT THE BROKER INITIATES, then perhaps that’s one thing. But if it is talking about all forums, including ones NOT .
I really don’t see the advantage of NFA membership for FOREX brokers. Futures, I see obvious benefits. Forex has so far disabled hedging, limited leverage, and is now attempting to censor certain avenues of information.
Why not require that the broker to link back to a certain url which contains all official information? And label other stuff as being “UN-OFFICIAL”