Proposed NFA Capital Requirement

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

  1. IBFX Plays Chicken with FIFO Deadline

    On July 31 the NFA’s FIFO order comes into effect. As of this moment the MT4 trading platform is not compliant with this rule and there is no guarantee that it will become compliant come the July deadline.

    For firms that heavily rely on MT4 this is bad news. FXDD, which uses MT4 but are not regulated and therefore under no obligation to comply with NFA rules at present, are taking advantage of their unregulated status by telling NFA to get bent. As an unregulated firm they can do what they like (then again the whole issue of FXDD being unregulated is a serious red flag in and of itself. After all, the feds could basically raid the firm at anytime and shut them down overnight.)

    But IBFX is (unfortunately for them) regulated solely by the NFA and their only trading platform at present is MT4. What is IBFX to do?

    IBFX’s CEO seems confident and in “nothing to see here style” stated the following in an email to customers:

    http://www.forexfactory.com/showpost.php?p=2837513&postcount=18

    That all sounds reassuring, but what if something isn’t worked out by July 31st?

    Meta Quotes is under no obligation to jump through hoops for IBFX and the NFA. And if Meta Quotes chooses not to (or is technically unable to) make any major changes to MT4 then IBFX is in big, big trouble as they will be stuck with a platform that is basically illegal.

    Would IBFX close? Would they halt trading? Would the NFA and CFTC step in? Would IBFX be granted an extension by regulators? Can they get a UK license in time? Can they roll out a new trading platform in time?

    Finally, how on earth did IBFX allow itself to be put in such a vulnerable position where their entire company is at the mercy of an independent third party based in Russia?

    These should be mandatory questions that every current and potential customer of IBFX should be asking.
     
    #721     Jun 30, 2009
  2. any updates on firm net capital?
     
    #722     Jul 12, 2009
  3. JDL

    JDL

    yes, have you check the cftc site, it came out about 2 days ago, also you can sign up to get a email when it comes out :confused:
     
    #723     Jul 13, 2009
  4. May Net Capital Report

    The CFTC has just released their latest net capital figures. This is the current state of the U.S. retail fx industry:

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

    Advanced Markets $20,722,000
    Easy Forex $20,928,000
    Ikkon Royal $21,247,000
    MB Trading $21,360,000
    Alpari $22,312,000
    Forex Club $25,427,000
    CMS Forex $29,788,000
    Interbank FX $35,611,000
    PFG $36,465,000
    FX Solutions $48,262,000
    FXCM $63,999,000
    GFT Forex $79,368,000
    Gain Capital $98,125,000
    Oanda $159,062,000
     
    #724     Jul 13, 2009
  5. Aboushi

    Aboushi

    You are missing mgforex and fxdd. Fxdd is not regulated but its a a huge portion of the worlds traders and mgforex is one of the firsts. Give them some credit, unlike previous regulated brokers, they kept their noses clean and MG might just come of out of the shadows. They had Fifo and didnt allow hedging before the NFA made it law. With even ground, MG might just become the next biggest fx broker in the US. I would watch out for them......
     
    #725     Jul 13, 2009
  6. Aboushi

    Aboushi

    I forgot one more broker that offers FX in the US.....Interactive Brokers
     
    #726     Jul 13, 2009
  7. MGForex says on the bottom of their website that they are NFA members (listed as MG Financial). They are listed as FCM since 2001. However, they show only ~5 mil net capital. How does that work anyways (thought firms offering FX must have 20mil by now).
     
    #727     Jul 13, 2009
  8. Actually - thats wrong.

    An FDM is classified as a firm thats primary business is Off-Exchange FX trading, as opposed to an FCM thats primary business is on-exchange traded products.

    It has nothing to do with execution model of taking the opposite side of trades or not.
     
    #728     Aug 25, 2009
  9. I started getting calls on my cellphone from this #:617-488-2200.
    I never answered, didn't recognize it. But I searched it and came up with Summer StreetFX in Boston. A name related to that is Craig Karlis, inactive status on the NFA, but who may have been involved with one of the Swiss fx debacles.
    Just a heads up...
     
    #729     Nov 11, 2009
  10. MrAngry

    MrAngry

    The US is a 'kin joke - how many times is me old mucker Craig gonna set up shop? Thx for the heads up, it's a bit more fodder for my cannon.
     
    #730     Nov 11, 2009