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Proposed NFA Capital Requirement

  • #821
  • Jun 5, 2008 4:03pm Jun 5, 2008 4:03pm
ROFL!!

Ok savior, ya made my day. When you're not out shilling for one or more of the major brokers you're a part-time song writer. Lol, awesome!

Is there a tune that goes with those lyrics? Sing it for us man and post it on youtube.
  • #822
  • Jun 5, 2008 4:36pm Jun 5, 2008 4:36pm
FXSavior is right the small firms had a chance to say their peace as the NFA sent a letter to all about the changing regs. However, none of the small firms were listened too and anyone who thinks other wise is full of shit.
  • #823
  • Jun 5, 2008 5:09pm Jun 5, 2008 5:09pm
In two simple sentences you've managed to sum up the gist of the last thirteen or fourteen posts.

Yes, the small firms had their chance.
No, it wouldn't have made any difference.
  • #824
  • Jun 6, 2008 6:38am Jun 6, 2008 6:38am
Quoting forexsavior
Opie If you want to blame someone for the passage of this law, blame the Forex Dealer in the mirror.

"Forex Dealer In The Mirror"

I'm Gonna Make A Change
For Once In My Life
It's Gonna Feel Real Good
Gonna Make A Difference
Gonna Make It Right . . .

As I, Turn Up The Collar On
My Favourite Winter Coat
This Wind Is Blowin' My Mind
I See These Forex Dealers In The Street
With Not Enough To Capital to Meet
Who Am I, To Be Blind?
Pretending Not To See Their Needs

A Summer's Disregard
An unregulated IB shop
And A One Money Manager’s Soul
They Follow Each Other On
The Wind Ya' Know
'Cause They Got Nowhere To Go
That's Why I Want You To Know

I'm Starting With The Forex Dealer In The Mirror
I'm Asking Him To Change His Ways
And No Message Could Have Been Any Clearer
If You Wanna Make The Forex World
A More Competitive Place
Take A Look At Yourself
And Then Make A Change

(Na Na Na, Na Na Na, Na Na,
Na Nah)

Forex Dealers Been A Victim Of
A Selfish Kind of Love
It's Time That They Realize
That There Are Some with No
Adjusted Net Capital
Not A Nickel To Loan
Could It Be Really Me,
Pretending That They're Not Alone?

A Willow Deeply Scarred,
Some trader's Broken Heart
And A Washed-Out Dream
They Follow The Pattern Of
The Charts, Ya' See
Cause They Got No Place To Be
That's Why I'm Starting With Me!

You got a lot of free time on your hand, or your just gay and always wanted to be on broadway.

Good luck with that...
  • #825
  • Edited 6:53am Jun 6, 2008 6:39am | Edited 6:53am
Quoting forexsavior
At some point you have got to take responsibility for your own business fellas. Everyone in the industry knew about this law. Yet where were the company press releases? Where was the organized lobbying? As Bob Dole once said "where's the outrage?!"

No. Instead you could hear the crickets chirping in the forex industry here in the U.S. Everyone acted as if nothing was going on. The response from smaller brokers seemed to be "maybe if we're real quiet they'll leave us alone." If Washington only hears the NFA's side of the story well then that is who they are going to believe.

If you want to blame someone for the passage of this law, blame the man in the mirror.
Speaking as a member of one of those companies, it's hard for the brokers to do much of anything because there's no forex lobby. There's been some efforts to try and do something about making a lobbying group, but you have a lot of disparate interests and disagreements in the industry. Also, not everything about this bill is bad for everyone, so there were disagreements. Bigger brokerages don't see the need to lobby to save competition, medium size brokerages calculate their interests, smaller brokerages try to find allies to support their survival.... there's a lot working against unity.

The most important thing was that this was a farm bill, so there were a LOT of interests already lobbying against it. There's not much a forex lobby could have done to add to that.

If you're going to think that the smaller brokerages were just sitting around, putting their head in the sand though, your assessment would not be accurate. There were discussions among a number of groups as to what could be done.
  • #826
  • Jun 6, 2008 7:18am Jun 6, 2008 7:18am
Thanks CK, I think most of us saw it like that. However you summed it up nicely.
The basis of a democratic state is liberty. ~ Aristotle
  • #827
  • Jun 6, 2008 11:39am Jun 6, 2008 11:39am
Quoting ck_itrade
Speaking as a member of one of those companies, it's hard for the brokers to do much of anything because there's no forex lobby. There's been some efforts to try and do something about making a lobbying group, but you have a lot of disparate interests and disagreements in the industry. Also, not everything about this bill is bad for everyone, so there were disagreements. Bigger brokerages don't see the need to lobby to save competition, medium size brokerages calculate their interests, smaller brokerages try to find allies to support their survival.... there's a lot working against unity.

The most important thing was that this was a farm bill, so there were a LOT of interests already lobbying against it. There's not much a forex lobby could have done to add to that.

If you're going to think that the smaller brokerages were just sitting around, putting their head in the sand though, your assessment would not be accurate. There were discussions among a number of groups as to what could be done.
CK did you call your local Congressman? Did you make your opposition clear to this bill? How many smaller brokers even bothered to do that? From all outward appearances most of the under $10 million brokers didn't even bother to pick up the phone and register their complaint let alone make a trip to Washington to lobby against the law.

Again, not a single press release from a single company opposing this bill. That's just pathetic. Forget about firms not wanting to work with each other. That's not the issue. This bill was not decided in secret by a couple of poobahs at the NFA. This was debated over for months in the House and the Senate and nothing was ever said in public by any of the firms that would be effected by this law. Why the hell was everyone hiding?

Every CEO of every firm under $10 million should have made a trip to Washington to make their feelings known. Hell if I owned a forex dealership that was under siege from such a law I wouldn't have sat on my ass while Washington set about to dismantle it.

Again, these firms only have themselves to blame. Man in the Mirror folks, Man in the Mirror.
  • #828
  • Jun 6, 2008 12:27pm Jun 6, 2008 12:27pm
Believe what you will Forex. Every small firm could have sent someone to Washington and it would have resulted in alot of people being paid to sit on the bench outside of Congress. You make it sound like they would have allowed a representative from every firm to come in and give their feelings on a Few words in a Huge bill. A bill that should have had nothing to do with the Forex industry.

Had this been a seperate bill, maybe they would have had a stronger leg to stand on though I doubt it when competing with the larger brokerages who simply have more money to bribe... I mean Lobby with.

However when every Farmer in america is busy discussing how much they like their government handouts and how much the price of milk would go up if their multi-million dollar Corporation didn't get those free handouts, no one really cares about Section G, Paragraph 14 that relates to the Forex. (By the way, no clue where it was in the bill.)
The basis of a democratic state is liberty. ~ Aristotle
  • #829
  • Jun 6, 2008 12:35pm Jun 6, 2008 12:35pm
Quoting forexsavior
CK did you call your local Congressman? Did you make your opposition clear to this bill? How many smaller brokers even bothered to do that? From all outward appearances most of the under $10 million brokers didn't even bother to pick up the phone and register their complaint let alone make a trip to Washington to lobby against the law.

Again, not a single press release from a single company opposing this bill. That's just pathetic. Forget about firms not wanting to work with each other. That's not the issue. This bill was not decided in secret by a couple of poobahs at the NFA. This was debated over for months in the House and the Senate and nothing was ever said in public by any of the firms that would be effected by this law. Why the hell was everyone hiding?

Every CEO of every firm under $10 million should have made a trip to Washington to make their feelings known. Hell if I owned a forex dealership that was under siege from such a law I wouldn't have sat on my ass while Washington set about to dismantle it.

Again, these firms only have themselves to blame. Man in the Mirror folks, Man in the Mirror.
Savior,

You couldnt be more wrong... Actually all of them got together and most met with congressmen and lobbyists. Stop talking out of your ass, you have no idea what you are talking about.
  • #830
  • Jun 6, 2008 12:39pm Jun 6, 2008 12:39pm
Quoting Vensik
Believe what you will Forex. Every small firm could have sent someone to Washington and it would have resulted in alot of people being paid to sit on the bench outside of Congress.)
Again, if this were my business I would have been fighting like hell to save it. Maybe you win, maybe you lose, but at least YOU TRY. Lord if that is the attitude these small forex dealers actually took it's amazing they even had the energy to start their business in the first place.

But no matter. That's all in the past now. The new CFTC capital numbers will be coming out shortly as well as the CFTC's new forex dealer regs. No used crying over spilt milk.
  • #831
  • Jun 6, 2008 12:40pm Jun 6, 2008 12:40pm
Quoting fxtrader42
Savior,

You couldnt be more wrong... Actually all of them got together and most met with congressmen and lobbyists. Stop talking out of your ass, you have no idea what you are talking about.
Really? Give us some details FX Trader...
  • #832
  • Jun 6, 2008 12:44pm Jun 6, 2008 12:44pm
Quoting forexsavior
Again, if this were my business I would have been fighting like hell to save it. Maybe you win, maybe you lose, but at least YOU TRY. Lord if that is the attitude these small forex dealers actually took it's amazing they even had the energy to start their business in the first place.

But no matter. That's all in the past now. The new CFTC capital numbers will be coming out shortly as well as the CFTC's new forex dealer regs. No used crying over spilt milk.
Maybe you would try knowing you would fail. I would spend my time and energy trying to evaluate how this will affect my company and move forward. In fact, that's what I've been doing however thats another story.

If I were a broker, I would have spent my time figuring out how to get my brokerage offshore and away from the NFA so they could not hurt my clients.

Atleast then I would have been able to say that my clients and company were still intact, where you could go to your customers and say "we tried and failed, But I tried. Your accounts will now be transfered to X large broker."
The basis of a democratic state is liberty. ~ Aristotle
  • #833
  • Jun 7, 2008 1:10am Jun 7, 2008 1:10am
Quoting forexsavior
CK did you call your local Congressman? Did you make your opposition clear to this bill? How many smaller brokers even bothered to do that? From all outward appearances most of the under $10 million brokers didn't even bother to pick up the phone and register their complaint let alone make a trip to Washington to lobby against the law.
This assumes i-Trade FX was in opposition to this bill - we're above the cap requirements that will be in place, and I personally don't see any serious issues for us AFAIK. I'm guessing at the other firms' motivations (although obviously I have a little more inside view of what protests would have been filed by the industry), but just because a company doesn't put out a press release doesn't mean they were sitting there doing nothing. In fact, I could argue that if you were a 10 million firm worried about the cap requirements, you would be best off NOT to put out a press release opposing said requirements, because it might lead people to think you had doubts whether you could meet the new requirements.

Quote
Every CEO of every firm under $10 million should have made a trip to Washington to make their feelings known. Hell if I owned a forex dealership that was under siege from such a law I wouldn't have sat on my ass while Washington set about to dismantle it.

I can't answer as to what every firm actually did, but I did hear about some of the ways they registered their concerns. But I can perfectly see why a smaller firm wouldn't publicly announce their opposition, as some clients would take that as a sign of weakness. Heck, if I recall correctly, didn't I see some post where you jumped on us for our net cap at one point in the past? That was for a one month report - I find it hard to believe that no one would have been posting on a blog or a forum saying "Forex Trading Company, Inc just put out a press release stating they oppose the new cap regulations! They only have 10 million in net cap right now! They must know they can't make it and that's why they're oppossed!" --- and people would be eating it up on here, agreeing with that person.

The best poker players are often the ones with the best poker face, not the most emotional ones. A press release is an emotional outburst that doesn't really do much to advance the issues in question.
  • #834
  • Jun 11, 2008 1:05pm Jun 11, 2008 1:05pm
Week one of the Caveman Forex Challenge is in the books. Our friendly neighborhood Neanderthals gave out 12 free trades last Wednesday. It was not one of Caveman’s better weeks according to their own grid which shows them losing -5 pips overall on all their trades. However, due to risk/reward ratios and a slightly different price feed that resulted in the Savior making money on a trade the Cavemen lost on we made a $348.39 profit overall in our demo account as four trades went in our direction and four trades went in the other direction.

Tonight a new batch of trades will be published. You can find them here if you wish to play along: http://www.cavemanforex.com/WednesdaysFreeForexPicks.html

CFTC Update: I have not heard anything yet about the new forex dealer rules. However, CFTC should be releasing their net capital report this week. Stay Tuned.
  • #835
  • Jun 11, 2008 3:48pm Jun 11, 2008 3:48pm
Last year Finex was investigated by the SFBC in Switzerland, however, they were not closed for fraud as was indicated in a post titled “The Dead Pool Graveyard.” It appears that Finex was bought out by Varengold FX thus bringing the investigation to a close. Details of the merger can be found here:

http://download.varengold.com/varengold.de/download/VG-Finex_Press_Release-us_customer.pdf

The Savior regrets the error.
  • #836
  • Jun 12, 2008 6:22am Jun 12, 2008 6:22am
And the latest statistic is released:

Selected FCM financial data as of April 30, 2008 (from reports filed by May 31, 2008) is now available.

http://www.cftc.gov/marketreports/fi...fcms/index.htm

cheers
  • #837
  • Jun 12, 2008 8:35am Jun 12, 2008 8:35am
Quoting forexsavior
Week one of the Caveman Forex Challenge is in the books. Our friendly neighborhood Neanderthals gave out 12 free trades last Wednesday. It was not one of Caveman’s better weeks according to their own grid which shows them losing -5 pips overall on all their trades. However, due to risk/reward ratios and a slightly different price feed that resulted in the Savior making money on a trade the Cavemen lost on we made a $348.39 profit overall in our demo account as four trades went in our direction and four trades went in the other direction.

Tonight a new batch of trades will be published. You can find them here if you wish to play along: http://www.cavemanforex.com/WednesdaysFreeForexPicks.html

Its pretty easy to figure out how his system works from his last 2 calls alone (the gist of it anyways). Your challenge is based on pure luck tho, looking at ~10 days of a system that trades the whole year is not really significant.
  • #838
  • Jun 12, 2008 11:06am Jun 12, 2008 11:06am
Quoting shrike
Its pretty easy to figure out how his system works from his last 2 calls alone (the gist of it anyways). Your challenge is based on pure luck tho, looking at ~10 days of a system that trades the whole year is not really significant.
point taken
  • #839
  • Jun 12, 2008 11:56am Jun 12, 2008 11:56am
The new net capital numbers are out. These numbers are more important than ever due to the new law requiring all forex dealers have $10 million in adjusted net capital by the end of September and $20 million by May 2009. Here is the link to access the report:
http://www.cftc.gov/stellent/groups/public/@financialdataforfcms/documents/file/fcmdata0408.pdf

The following firms have net capital below $10 million

Advanced Markets $5,041,000
Bacera $5,370,000
MG Financial $5,886,000
CMC $7,089,000
Forex Club $7,562,000
Easy Forex $7,741,000
Hotspot $7,783,000
Friedberg Mercantile $8,053,000
MB Trading $8,381,000
Ikon $9,418,000

In particular you will notice that three firms are far below the upcoming increase to $10 million. Advanced Markets, Bacera and Money Garden. In fact, they are struggling just to meet the current $5 million net capital requirement with Advanced Markets a scant $41,000 above the current law! That kind of capitalization does not inspire much confidence and traders really need to beware doing business with them.

The following firms have net capital below $20 million

GFS Forex $11,376,000
Alpari $11, 766,000
IFX $12,362,000
ODL $12,995,000
CMS Forex $14,085,000
I Trade FX $16,054,000
FX Solutions $17,628,000
PFG $19,369,000

The following firms have net capital above $20 million

Interbank FX $21,367,000
GFT Forex $64,288,000
Gain Capital $66,314,000
FXCM $73,603,000
Rosenthal Collins $76,571,000
Oanda $163,136,000

As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new law.
  • #840
  • Jun 12, 2008 12:37pm Jun 12, 2008 12:37pm
I'm curious what happens when the deadline passes and a firm can't meet it? I know it's a stupid question, but will customers be able to withdraw their money?
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