Reading the story below you may think it’s either a work of fiction or that it happened in a Third World country. Unfortunately it’s neither. Although the NFA never published anything we managed to glue various bits and pieces and work out what really happened: For a while now GFT, and several other brokers, calculated their regulatory capital requirements for various global subsidiaries from one pooled corporate capital account. This account was put aside as part of the company’s own capital and was separated from their customer funds account. The practice was known and accepted by the NFA for several years and was ... (full story)