Proposed NFA Capital Requirement

Discussion in 'Forex Brokers' started by forexsavior, Jun 28, 2007.

  1. 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?
     
    #691     May 6, 2009
  2. PreCap

    PreCap

    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

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

    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.

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

    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:
     
    #692     May 6, 2009
  3. 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 :)
     
    #693     May 6, 2009
  4. euclid

    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.
     
    #694     May 6, 2009
  5. JDL

    JDL

    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.
     
    #695     May 6, 2009
  6. 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.
     
    #696     May 6, 2009
  7. PreCap

    PreCap

    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...
     
    #697     May 6, 2009
  8. 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!
     
    #698     May 7, 2009
  9. 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

    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.
     
    #699     May 7, 2009
  10. 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.
     
    #700     May 8, 2009