Proposed NFA Capital Requirement

Some more old muckers in this one: http://compliancex.typepad.com/compliancex/2009/11/2-charged-with-running-190m-ponzi-scheme.html

 

"bought 51% of Crown Forex SA in December 08"

That thing was such an obvious scam (zero spread/no commission/swiss domicile). Bought it right before it got shut down too. Its almost funny.

 

MIG got its Swiss banking license last week - no others are close to being issued I hear.

 

I'm surprised MIG beat ACM to the chase. Anyone seen any updates about ACMs attempt to become a bank?

 

This is what the regulator said when I asked if any other companies were in line:

"Actually we do not think, that there will be much more in near future. As we mentioned when the law changed in April 08, we expect to have at the end about five to ten approved dealers. By the way: you find the documentation regarding the change of law on our webpage (http://www.finma.ch/archiv/ebk/e/aktuell/index.html)."

 

http://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata1109.pdf

This is the newest report , if u notice now the NCR has changed , for example for Oanda it is 28 M not 20M , for FXCM it is 25M , MB 20M , can anyone tell how it is calculated ? maybe this file help i am still reading http://www.cftc.gov/ucm/groups/public/@iointermediaries/documents/file/1fr-fcminstructions.pdf

 

20M is the minimum for a FDM. If a firm does not offset all client positions immediately the firm must set aside additional funds to account for this risk.

 

No we take the greatest ,
(c): A firm's net capital requirement is the greater of
(1) $250,000; or
(2) risk based capital requirement, the sum of 8% of total customer
risk maintenance margin and 4% of total noncustomer risk
maintenance margin; or
(3) The amount of capital required by a registered futures
association (currently NFA is the only such association); or
(4) for securities brokers and dealers, the amount of net capital
required by Rule 15c3-1(a) of the Securities and Exchange
Commissio
Now ignore 4 for forex dealers , and this is for 3 : •
$5,000,000; or
•
5% of all liabilities owed to customers (Forex Dealer Members must report the total amount of liabilities owed to customers as an itemized “other” payable at Line 27.J of the Statement of Financial Condition. For purposes of this required reporting by Forex Dealer Members, the term “customer” refers to a counterparty that is not an “eligible contract participant,” as defined in Section 1a(12) of the Commodity Exchange Act.)

I guess this 5 M figure is old it is 20 M now as we know ...

 

Maybe they will change it to 20M plus 5% of liabilities to FX clients ...

http://www.cftc.gov/newsroom/generalpressreleases/2010/pr5772-10.html

 

No one noticed the cap on leverage at 10:1??????