Proposed NFA Capital Requirement

So let me get this straight, the main reason to move to offshore broker, IE FXCM UK, is to get the hedging ability. Is there anything else, that I'm missing?
 
FXDD’s Ominous Anniversary

FXDD is making waves these days by refusing to adopt the NFA’s new hedging rule:

http://blogs.fxstreet.com/francesc/...ile-fxsolutions-launches-gold-silver-trading/

To our valued clients,

In our effort to provide the best solution for your trading regarding the NFA’s new rule on hedging, please know that we have been in contact with the NFA and have offered several solutions which we believe will accommodate almost all types of trading strategies and comply with the NFA rules. Our discussions with the NFA are ongoing and we will keep you advised. In the mean time, know that FXDD is making no immediate changes to any platforms and that you will be fully advised prior to any proposed changes.

The FXDD Team.
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How can they do this? Simple. FXDD still isn’t licensed by the NFA.

http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0397435&rn=N

It’s easy to thumb your nose at regulators when you don’t actually have to answer to them. FXDD applied to become a member of the NFA in April of 2008. One year later their application remains unapproved.

Should traders be concerned about this? Absolutely. Not only is FXDD unlicensed (and therefore in possible violation of U.S. law) but now they are actually thumbing their nose at the very regulator who they are seeking to get that license from.

This is not prudent behavior on FXDD’s part and traders should stay clear of this firm until they are actually authorized to operate inside the United States.
 
I've not noticed anything different on Oanda's game platform. Did Oanda change anything to the regular platform to accommodate the hedging rule change?
 
forexsavior, you know whats funny, when you think about it only one broker has benefit from all this, wether its the new net cap or this no hedging rule, fxcm is the only broker who has benefit the most with these new rules the N.F.A. has put in place, fxcm brought out a few u.s. brokers due to the new net-cap now there getting U.S. client to leave there U.S. broker to switch to there U.K. operation for hedging, makes you wonder :eek:
 
Quote from Ivanovich:

I've not noticed anything different on Oanda's game platform. Did Oanda change anything to the regular platform to accommodate the hedging rule change?
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No need as you could never 'hedge' on the same account anyway.

Price feed and fills have got interesting though, quotes now seem to be indicative as opposed to tradable, perhaps that's something to do with the new price adjustment rule coming in soon or maybe it's just a slow connection, either way I've found it's been swings and roundabouts as far as slippage goes. There's always bounds if things get ridiculous :)

Still waiting for news from Oanda about how they're going to handle price adjustments on this thread
 
Quote from Ivanovich:

I had wondered if they would consider "sub accounts" the same account or not.
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I could be wrong but going by NFA wording I think they're looking at it as accounts which have separate margin requirements, that seems to be the criteria.

What are you doing on demo anyway, have you moved your live account to futures permanently or are you trading spot with another broker?
 
FXDD Not Fighting, Just “Talking” with NFA

Interesting post from Francesc at FX Street regarding FXDD’s decision not to implement the NFA’s new hedging rule. Jim Green, Managing Director at FXDD, wrote in to say that FXDD “was not fighting NFA.” They’re just having “constructive conversations” with NFA about the new hedging rule:

http://blogs.fxstreet.com/francesc/...rule-a-misleading-information-apologies-fxdd/

“Dear Francesc: It has been some time since we last communicated. Although FXDD enjoys the coverage it (usually) receives on FXstreet, your recent headline was somewhat misleading and I want to state for the record that FXDD is not fighting the NFA on the hedging rule. As you know, FXDD is pending with the NFA and we discuss our application with the designated parties at the NFA. Our discussions with the NFA should not be interpreted as “fighting.” We have had and continue to have very constructive conversations with the NFA in terms of the practical application of the new rule and, for purposes of the rule, what actions are permissible.

I respectfully ask that you clarify our position with your readership.”
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Ok. FXDD may not believe they are fighting with NFA, but how else should NFA interpret FXDD’s decision not to implement the new hedging rule?

Of course, in fairness to FXDD, why should they implement a regulatory rule that will be harmful to their business if this same regulator continues to stall on their license application? This could be FXDD’s way of saying “give us a license, then we’ll implement your rules.”

But is it wise to take on NFA like this? This is why traders should sit on the sidelines until FXDD gets that license. They are playing a game of chicken with regulators. And in the current climate we are in where regulators are under enormous pressure to crack down on rogue financiers no trader wants to be in the middle of what could be one ugly head on collision.
 
Quote from cabletrader:

I could be wrong but going by NFA wording I think they're looking at it as accounts which have separate margin requirements, that seems to be the criteria.

What are you doing on demo anyway, have you moved your live account to futures permanently or are you trading spot with another broker?
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Moved to IB. Liking it much better, though still going slow while I get used to it.

I just use the demo to screw around with some ideas.
 
What do Crown Forex and Chrysler have in Common?

They are both stuck in bankruptcy with creditors (and traders) waiting in a line that stretches around the block. Let that be a lesson to anyone who owns shares in General Motors or has an account with an unlicensed Swiss Broker.

Here are the details of the Crown Forex Bankruptcy:
http://blogs.fxstreet.com/francesc/2009/05/20/finma-opens-bankrupcy-process-of-crown-forex-sa/

Dear clients,

The Swiss Financial Market Supervisory Authority (FINMA) has rendered on May 18, 2009 a decision opening the bankruptcy of CROWN FOREX SA as of Tuesday May 19, 2009 at 08:00 am (Swiss time).

The decision will be published on May 29, 2009 at 10:00 am (Swiss time).

Philippe von BREDOW and Laurent WINKELMANN have been appointed as bankruptcy liquidators by the FINMA.

Effective immediately, as of the date and time of the bankruptcy opening, the activities of CROWN FOREX SA are suspended, the company, its Directors and officers are forbidden to make or receive payments, and all the clients’ open positions are closed.
We thank you to communicate to the liquidators, until June 30, 2009, in writing the following :

1. Account Number and relevant details;
2. Open positions as of Tuesday 19 May 2009 at 08:00 (Swiss time), together with supporting documents thereof;
3. Any additional claim you may have toward CROWN FOREX SA;
4. Any debt you may have toward CROWN FOREX SA.

Sincerely
Philippe von BREDOW - Laurent WINKELMANN
NOTTER MEGEVAND & PARTNERS
Place Edouard-Claparède 3
1205 Genève
SWITZERLAND
p.vonbredow@nomea.ch
l.winkelmann@nomea.ch
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This is why traders need to beware opening an account with any Swiss broker that doesn’t have a banking license. Notable Swiss brokers like ACM, DukasCopy and MIG have all applied for licenses. But they do not yet have that license. Beware opening an account with these firms until they do, lest you end up like the poor sods at Crown Forex.
 
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