Tag Archives: NFa
When the US regulators said DO NOT chase the US public as potential clients they meant it! Cyprus based Trading Point has been given a harsh warning and fine by the CFTC as it has been found guilty of unlawfully …
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Somehow this went unnoticed until James Bibbings at Turnkey Trading Partners picked it up – NFA’s Interpretative Notice to NFA Compliance Rule 2-10 specifically targets PAMMs (Percentage Allocation Management Modules) which are quite popular with some money managers. While PAMMs (under …
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An unregulated margin FX broker claims to be using the ‘standards’ of regulator: NFA? Can we trust them? StrategemFX, the Belize-based provider of online foreign exchange services, this week went to the extraordinary lengths of documenting its compliance with the security …
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Following MF Global’s debacle NFA and CFTC are seeking ways to strengthen client funds protection. One of the obvious ways of doing that is the segregation requirement which for instance didn’t exist for forex brokers until now. This will soon change. Forex Magnates sources …
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NFA fines PFG $700,000; bars it from accepting new IBs for two years for deficient IB practices
9
2012
Now this is a business killer. NFA just settled with PFG by fining it $700,000 and requiring it not enter into guarantee agreements with IBs for two years subject to an opportunity to request modification of this restriction. Peregrine, Wasendorf, O’Meara …
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Although this was known as a requirement for a while now especially after NFA fined FXCM in 2011 and Gain Capital in 2010 now this rule has become formal. NFA is currently busy auditing most of forex brokers trying to …
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CFTC just released a short statement where it taps itself on the shoulder being proud that all FCMs that were tested (14 of the largest ones) came through ok during some tests it made. This in a way reminds me …
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Instatrade Corporation, aka Insta Forex, and Ztradefx LLC were two of the 14 firms sued by the CFTC early last year. Ever since most firms didn’t bother to settle with the CFTC but some did. Last week we saw that FXOpen settled the case with the CFTC paying $140,000 fine.
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CFTC to introduce a rule on investment of customer funds following MF Global's fiasco
6
2011
So it only takes half a billion dollars in customer funds to disappear before CFTC takes an action aimed at large FCMs. In the wake of MF Global’s fiasco CFTC has finally decided to reintroduce a rule that will limit the investment of customer funds to many instruments thus ‘enhancing customer protection’
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NFA is doing an amazingly effective job at spitting in the well it drinks from. In fact NFA behaves not as a regulator but as a controlling shareholder of its members – as it basically does whatever it wants when it comes to requirements and ‘membership’ fees. NFA just declared a new ‘dividend’ for itself by aggressively raising membership fees which for some strange reason will now be in the region of 2% of forex broker’s gross (!) revenue instead of being a flat yearly fee like up until now. To the best of my knowledge NFA is the only forex dictator regulator charging percentage of volume and/or revenue instead of just charging same membership fee from everyone.
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