Proposed NFA Capital Requirement

Quote from PreCap:


I'll chalk this up to confusion because we're talking about the same things....
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lol, I don't think we are!

Did you see the ticket I posted? 'Stop' and 'Limit', the clue is in the name. FIFO is such an amazingly simple concept I'm surprised you couldn't work it out for yourself, or at least question what that fool account manager was telling you.

Between you and IShopAtPublix (who thinks he's going to have to stay up all night to manage his stops and limits), and misinformed account managers calling up clients shouting 'fire' it's almost embarrasing by association of being involved in the same market, I seriously never realized just how many challenged people there are in this business!

I take it your account managers didn't call you up to let you know the latest news?
 
I'm sorry I didn't understand before....Tisk for me even arguing with you:( .....but you should really change your name to disabledtrader so we know before we start speaking to you...

Let's try it this way...I always take the time out for the less fortunate.


First, this link may be helpful here...you can click it to reach the page ;-)


What is FIX
http://www.fixprotocol.org/what-is-fix.shtml

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Now let's move on to the NFA website you found, all by yourself. Good Job buddy... I copied and pasted the important stuff because there are some really nasty words in there that you might not get past reading... Like Forex



NFA has received several requests to extend the effective date due to the complexity of the programming changes required to comply with the FIFO requirement. After considering those requests, NFA has decided to extend the effective date for the FIFO part of the rule until July 31, 2009. Therefore, FDMs may not carry offsetting positions in the same account if either of those positions was established after May 15, 2009, but FDMs may offset positions on some basis other than FIFO through July 31, 2009.


Okay... Now let's try to focus on this sentence...Try hard for us...

NFA has received several requests to extend the effective date due to the complexity of the programming changes required to comply with the FIFO requirement.

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Now let's revisit a few lines from those posts of mine I requoted

1.
My account managers, at different firms, all called me today, and told me they're sending everyone packing to their U.K variants...Yes it is true...no stop or limit orders... Everything will have to be either a market order or another entry order at what you're so called "stop" or "limit" is...


... I was on-boarding my FIX engine just now and it's going to be a real pain in the ass to fix things, just to trade in the states... Makes me wonder if Forex trading in the U.S. will die out soon.



2.
Hmmm... I just realized you haven't got a clue why I was even thinking so hard about it... I'm on-boarding my FIX engine right now, to setup trading, at the most brokerage firms, I've ever worked with at the same time. I've got a little over 20 foreign and domestic and can trade anywhere running Currenex... So I thought I was going to have to reimplement a piece of middlware that makes it possible for one signal to be sent everywhere with the same message... It took a long time to get to where it is now...and alot of development costs...So my freaking out was more so being pissed off... Although, when I think about it, they may have just been trying to let me know I could do that, so I don't have any hold ups, if something with their FIX API changes for U.S. related trades.

------------------Changing Subjects


What is a Rootkit
http://en.wikipedia.org/wiki/Rootkit


Now if you haven't understood yet that I have something far more complex going on than you... Then I can shoot you over an email attachment that will explain everything you'll need:eek:
 
Quote from PreCrap:

I'm sorry I didn't understand before....
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Hey no problem, all you had to do was ask and I would have been happy to explain it to you in simpler terms than I have done already.

It's really easy once you understand it, hopefully you're a litle bit more clued up now than you were a few days ago!

Anyway, you have a great day :)
 
Quote from JDL:

what fuck up is only one broker is benefiting from all of this and thats FXCM, they have brought out ODL, HOTSPOTFX, I-TRADE, where's the competition the N.F.A. wanted.
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Who said NFA wanted competition? Big brokers like FXCM are the ones that influence NFA policies. Capital requirements were deliberately set at a level that is only commercially viable for big bucketshops.
 
Quote from euclid:

Who said NFA wanted competition? Big brokers like FXCM are the ones that influence NFA policies. Capital requirements were deliberately set at a level that is only commercially viable for big bucketshops.
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capital requirements was not deliberately set to favor big bucket shop, i don't know if you remember where there was span in the u.s. where a lot of small bucketshops were either closing there doors and running off with customers money or some was just small time fraud brokers, this is what promt N.F.A. to change the rules, so the industry did it to itself. nobody to blame but the small time bucketshop and you can throw refco in there too.
 
Turns out pre cap was right. Today I got two e-mails from FXCM (1 for each account) telling me about switching to UK branches. I am going to think about it while I can because I see NFA going insane in the near future.
 
Quote from IShopAtPublix:

Turns out pre cap was right. Today I got two e-mails from FXCM (1 for each account) telling me about switching to UK branches. I am going to think about it while I can because I see NFA going insane in the near future.
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Thanks IShopAtPublix I see Unabletrader couldn't grasp something could be bigger than his little world on ET....

Just remember where you heard it first my friend...
 
Quote from IShopAtPublix:

Turns out pre cap was right. Today I got two e-mails from FXCM (1 for each account) telling me about switching to UK branches.
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Seriously, you didn't know FXCM had offices outside the US which are regulated by different authorities, you needed an email to tell you!?

I guess now you won't need to stay up all night watching your trades, lol :D


You couldn't make this stuff up, someone needs to write a book about this market and it's participants!
 
GFS Shutting down U.S. Forex Operation

The stampede of small brokers out of the U.S. market continues. GFS Forex and Futures has announced they are shutting down their U.S. forex operation. GFS has purchased City Credit Capital in the U.K. and is relocating their business to London. However, they are no longer allowing U.S. customers to trade forex with them:

http://www.gfsforex.com/eng/announcement/index.htm

Dear Valued Clients,

GFS Forex & Futures, Inc. is pleased to announce that we will be expanding territorially with the anticipated merger of City Credit Capital (UK) Ltd. ("CCC"), a United Kingdom based brokerage firm registered with and regulated by the Financial Services Authority ("FSA"). As part of this expansion, GFS is moving its trading operations for over-the-counter products to our London operations.

Because this move means that our US operation will no longer be able to handle your forex trading account, you will need to transfer or close your GFS forex account. You should, therefore, decide which course of action you want to pursue. You can liquidate your open positions at anytime and close your account simply by completing and submitting the GFS Fund Withdrawal Form available on GFS' website. We will also assist you in transferring your account to a forex broker of your choice.
If you have questions about these matters or wish to deliver your transfer or liquidation orders personally, you can contact Mr. Alan Ho at GFS Forex and Futures, Inc., One Post Street, Suite 2550, San Francisco, CA 94104, (415) 321-7188, closeaccount@gfsforex.com.

You need to understand that the last trading day for your GFS forex account will be Friday May 8, 2009. If you have not already closed or transferred your account before this date, by 4:00 pm East Coast Time on 8th May 2009, all open positions will be automatically closed at that day's closing price and any funds remaining in your account will be sent to you. Please recognize that we may need to verify a current wire transfer address for receipt of your funds and may need to contact you to obtain this information.

On April 20, 2009, GFS posted a notice on its website which could be taken as an offer for GFS to transfer your forex account to CCC. While CCC is registered with the FSA in the UK, it is not registered in any capacity with the CFTC nor is CCC a Member of NFA. Pursuant to the Commodity Futures Modernization Act (the "Act") and NFA Rules, GFS may only transfer forex accounts and positions of its US retail customers to certain enumerated entities to act as the new counter-party for any such transferred forex positions. CCC is not such an enumerated entity under the Act or NFA Rules.

Consequently, if you are one of our US retail customers, GFS may not transfer your forex positions or account to CCC. GFS regrets any confusion this posting may have caused.
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Once again, the moral of the story is to stay clear of these smaller U.S. based forex dealers until they can clearly meet the $20 million capital requirement and demonstrate that they can adapt to the NFA’s new rules and regulations. Having your account forcibly liquidated with barely any notice should not be part of the bargain when you open up an account with a forex dealer.

The CFTC should be releasing their new financial data any day now. It should be required reading for anyone with an account in the U.S.
 
March Net Capital Numbers

The CFTC has just released their latest net capital figures. With I Trade FX and GFS Forex departing the U.S. market that leaves only a little more than a dozen firms left standing.

http://www.cftc.gov/marketreports/financialdataforfcms/index.htm

The following firms have net capital below $20 million

Easy Forex $15,552,000
Ikkon Royal $16,423,000
Alpari $16,557,000
MB Trading $17,031,000
Advanced Markets $19,686,000

The following firms have net capital above $20 million

Forex Club $21,354,000
CMS Forex $29,360,000
PFG $30,444,000
Interbank FX $38,393,000
FX Solutions $45,032,000
GFT Forex $87,169,000
Gain Capital $95,879,000
FXCM $113,463,000
Oanda $161,723,000

As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new $20 million capital requirement that is about to go into effect.
 
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