In 2006, the CFTC raised the minimum ANC to 1 million form just 250,000, and in late 2007 it raised it to 5 million. The reauthorization, however, quadruples that to 20 million plus anywhere from 1% to 4% of customer equity phased in between now and May 2009.
The first day of reckoning comes on OCT.31 when firms with less then 10 million in capitalization will be forced to shut their doors. The next date is January 17, 2009, when firms with less than 15 million get the chop, and then comes May 16, 2009, when anyone below 20 million is no more, at least not as an independent retail broker.
Companies who's platforms offer leverage of 100:1 or more will see their capitalization requirements double. This might be important to note especially if you are thinking about making a broker change. When the NFA proposed its 5 million capitalization requirement in the middle of last year only less than 10 forex firms would have made the cut at even that low level.
Regards,
Agentfx
The first day of reckoning comes on OCT.31 when firms with less then 10 million in capitalization will be forced to shut their doors. The next date is January 17, 2009, when firms with less than 15 million get the chop, and then comes May 16, 2009, when anyone below 20 million is no more, at least not as an independent retail broker.
Companies who's platforms offer leverage of 100:1 or more will see their capitalization requirements double. This might be important to note especially if you are thinking about making a broker change. When the NFA proposed its 5 million capitalization requirement in the middle of last year only less than 10 forex firms would have made the cut at even that low level.
Regards,
Agentfx
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