No way....JW has a 200th anv. Blue???? It's single malt green weather right now with an Arturo Feunte I must say. Hmmmm gonna have to check that out...and the damn broker minimum cap fiasco....
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DislikedSo finally another great ECN firm stay in Forex!
I am very happy that MB Trading has the minimum capital.
Now... I am confused.. Do they really need the $10,000,000 for offering 1:100?
Justin is this true? Damn,, I really hope notIgnored
DislikedIt seems like the NFA's position is that firms offering leverage of 100:1 or more are taking on more risk and thus should have more capital set aside.Ignored
DislikedHey Guys ~
I received confirmation today that brokers offering 100:1 on majors and 25:1 on non-majors are only required to deposit $5,000,000 per rule section 12(b). Those brokers who choose to offer the higher leverage (200:1 & 400:1) will have to deposit at minimum $10,000,000 prior to Dec. 21st.
What does that tell you about the higher leverage?
Maybe somebody would like to list the brokers that will only offer 100:1 and those that will offer 400:1...I certainly know MBTF won't be required to put $10,000,000 up.Ignored
DislikedYou are correct Justin. I misinterpreted this new $10 million capital requirement. The new $10 million capital requirement is for firms OVER 100:1 leverage. I'll make that correction elsewhere. And I agree with you regarding the NFA's assessment here. There is certainly far greater risk trading over the standard 1% margin level. The NFA made the right call here.Ignored
TESTIMONY OF DANIEL J. ROTH
PRESIDENT AND CHIEF EXECUTIVE OFFICER
NATIONAL FUTURES ASSOCIATION
BEFORE THE SUBCOMMITTEE ON GENERAL FARM COMMODITIES AND RISK MANAGEMENT COMMITTEE ON AGRICULTURE
U.S. HOUSE OF REPRESENTATIVES
SEPTEMBER 26, 2007
My name is Daniel Roth, and I am President and Chief Executive Officer of National Futures Association. Thank you Chairman Etheridge and members of the Subcommittee for this opportunity to appear here today to present our views on some of the issues facing Congress as it continues the reauthorization process. NFA is the industry-wide self-regulatory organization for the U.S. futures industry. As a regulator, NFA is first and foremost a customer protection organization.DislikedThanks eliteeservices, but that testimony had been linked before.
I think that eventually, they *might* look to go to 20 mill, but I don't think it'll happen for a long while (a year at least). For one, the members of the NFA on the forex side probably wouldn't like their organization to keep lifting the bar on them month by month. For the second, he is appealing to Congress to do it - which means one of two things (IANAL, so I could be entirely off here) 1) he doesn't have the overall authority to do it 2) he doesn't want to be the hitman and do it if Congress will.
Since Congress isn't exactly the speediest of groups, I don't expect such a requirement will go through any time soon, and I certainly don't think they'd put it into place so rapidly after the 5 million.
Interesting times coming in December...Ignored
Dislikedvensik is right, the NFA is simply shaking out the smaller firms. we do have a democracy 1 dollar 1 vote and the larger guys want to consolidate into 3-4 conglomorates. this is also supported by many in the industry, as it looks bad that there are 100 small firms (i tend to agree and so do many, because clients become confused, especially with less than ethical firms giving us all a bad name).
the fact that they are raising the net cap is a pointless argument, if they want to ensure a broker's stability, they should monitor their execution and clearing policies. you could run an FCM from your garage with 50 bucks if you knew what you were doing. does capitalization mean professionalism? look what happened to refco - one of the largest (in terms of funding) forex players gone caput due to bad management.
we should be worried about the POLICIES of brokers, not how much MONEY they have.Ignored
Dislikedvensik is right, the NFA is simply shaking out the smaller firms. we do have a democracy 1 dollar 1 vote and the larger guys want to consolidate into 3-4 conglomorates. this is also supported by many in the industry, as it looks bad that there are 100 small firms (i tend to agree and so do many, because clients become confused, especially with less than ethical firms giving us all a bad name).
the fact that they are raising the net cap is a pointless argument, if they want to ensure a broker's stability, they should monitor their execution and clearing policies. you could run an FCM from your garage with 50 bucks if you knew what you were doing. does capitalization mean professionalism? look what happened to refco - one of the largest (in terms of funding) forex players gone caput due to bad management.
we should be worried about the POLICIES of brokers, not how much MONEY they have.Ignored
DislikedPlease keep in mind that Gain Capital is in the process of integrating MetaTrader 4, and is confident that the system will be available on or around October 1st, 2007. Direct Forex appreciates your business and will keep you informed of any updates.Ignored