DislikedIt looks like another month was added. The first increase to 10 million will probably start on October 31st, 2008.
Today's Email from the NFA:Ignored
NFA case against Forex.com/Gain Capital 6 replies
NFA Takes Action Against Gain Capital 27 replies
What happens to brokers not meeting the NFA capital requirement? 4 replies
Is losing a requirement to be successful? 72 replies
MIG vs Northfinance Margin Requirement 2 replies
DislikedIt looks like another month was added. The first increase to 10 million will probably start on October 31st, 2008.
Today's Email from the NFA:Ignored
QuoteDislikedPOLICE in the Turks and Caicos Islands yesterday dismissed rumours that head of beleaguered investment club Olint, David Smith, had attempted to commit suicide by taking a drug overdose.
"He is alive and kicking as far as I know," Sergeant Calvin Chase of the Turks and Caicos police force told the Observer. "We have no such information and I am certainly not aware of it."
QuoteDislikedOn July 17, 2008, NFA's Executive Committee recommended that NFA's Board of Directors approve revisions to NFA Financial Requirements Section 11 to implement the increased capital requirements called for under the Reauthorization Act. Under these revisions, Forex Dealer Members will be required to maintain adjusted net capital equal to or in excess of $10 million as of October 31, 2008, $15 million as of January 17, 2009, and $20 million as of May 16, 2009. NFA staff expects that the Board of Directors will adopt these revisions at its meeting on August 21, 2008 and that the Commission will approve them shortly thereafter. We are providing advanced notice of the increase in capital requirements to give Forex Dealer Members sufficient time to make arrangements to come into compliance.
In addition to the increase in the required minimum capital, the Executive Committee also recommended that the Board of Directors approve revisions to NFA Financial Requirements Section 12 regarding the collection of security deposits. Section 12(a) requires that Forex Dealer Members collect and maintain minimum security deposits of either 1% or 4% of the notional value of each forex transaction, depending on the currency. Section 12(b) provides an exemption from this requirement for those Members that consistently maintain at least twice the required adjusted net capital. The revised rule would provide that a Forex Dealer Member that consistently maintains 150% of the required adjusted net capital would be exempt from having to collect the prescribed security deposits. As with the capital requirements, NFA staff anticipates this revision also becoming effective on October 31.
DislikedHi Forexsaviour,
How is FXDD progressing with their application, still pending, any idea what their capital will be once approvedIgnored
DislikedIts a good question. Website shows still pending. I can't imagine FXDD will be approved unless they can meet the new cap requirements. So they'll need $20 million to say the least.Ignored
DislikedIt definitely is a good question. If they were to be approved today they would only have to have 5M in net cap and as the net cap rises they will have to eventually have 20M.
Ignored
DislikedAs far as I know the Early Warning will be 30M ( Net Cap +50%). Is that right?Ignored
DislikedInstead of guessing or speculating on FXDD, why don't you call them and ask...Ignored
DislikedLava,
I haven't hear of that but you might be right. Where did you get that information?Ignored
DislikedTrader42, my comment was directed to FXsav but in any case, when I spoke to fxdd, they were very clear on it and upfront. They are a good company. PM and I will give you exactly who to speak to for NFA related questions. Cheers!
FXTIgnored
DislikedThe CFTC has released its latest Adjusted Net Capital report. With less than three months to go before the NFA raises capital requirements to $10 million the Capital issue is once again front and center in retail forex. How does you firm stack up?
http://www.cftc.gov/marketreports/financialdataforfcms/index.htm
The following firms have net capital below $10 million
Advanced Markets $5,054,000
Bacera $5,361,000
MG Financial $6,086,000
ACM $7,342,000
Hotspot $7,711,000
Friedberg Mercantile $8,189,000
Ikon $8,301,000
Forex Club $8,454,000
CMC $8,729,000
Easy Forex $9,478,000
No change in capital for Advanced Markets, Bacera and Money Garden who are still way below the upcoming cap increase. Also, for the first time ACM is reporting net capital and their first number out of the box isn’t that great. One suspects they had no idea cap requirements were going up and it could very well be they have completely mistimed their entry into the U.S. market. ACM appears to have brought a knife to a gun fight… Typical of a Swiss firm isn’t it?
The following firms have net capital below $20 million
GFS Forex $10,909,000
MB Trading $11,165,000
IFX $13,010,000
ODL $13,053,000
Alpari $13,084,000
I Trade FX $16,097,000
FX Solutions $17,974,000
CMS Forex $17,931,000
PFG $19,862,000
The following firms have net capital above $20 million
Interbank FX $30,364,000
Gain Capital $61,918,000
GFT Forex $67,298,000
FXCM $70,792,000
Oanda $165,526,000
As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new law going into effect in less than three months.Ignored
DislikedI dont see why you waste your time bringing it up before it even happens. What kind of retarded company would put all its money on the side if it doesnt have to? If it was me, I wouldnt put the money in the bank to show off in a CFTC report. I would invest it to improve my trading platform, provide better customer service to my clients, and offer promotions to those who trade with me. So dont think like a stooge, think like a business man!!!Ignored