CHF Crisis Causes NFA to Considering New Regs - "Nothing is off the table"

[karwil]

Well, thanks for your response although i must say you seem a little agro, for what reason i cant imagine. Anyway, you seem to feel that it isnt a problem dealing with self confessed market makers which is great.
Enjoy your trading

 

[fxstrategist]

Most likely there will be changes. These things have to happen in order to put order in the house.

 

[AsstModerator]

Some changes have already happened...

Notice I-15-04
January 21, 2015

Immediate attention required – Financial Requirements Section 12 – Increase in required minimum security deposit for forex transactions

As you know, NFA Financial Requirements Section 12 requires FDMs to collect and maintain a minimum security deposit of 2% of the notional value of transactions in 10 listed major foreign currencies (including the Swiss franc, Swedish krona and Norwegian krone) and 5% of the notional value of other transactions. Importantly, Section 12 also permits NFA's Executive Committee to temporarily increase these requirements under extraordinary market conditions. Given the events of late last week involving the Swiss franc, the Executive Committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs under Section 12 as follows:

Swiss franc – 5%
Swedish krona – 3%
Norwegian krone – 3%

These increases are effective as of 5 p.m. (CST) on January 22, 2015 and will remain in effect until further notice. FDMs should be aware that the Executive Committee may make additional increases in these currencies or other currencies as warranted by market conditions.

If you have any questions on these requirements, please contact Valerie O'Malley, Director, Compliance (vomalley@nfa.futures.org or 312-781-1290) or Rachel Brandenburg, Senior Manager, Compliance (rbrandenburg@nfa.futures.org or 312-781-1472).

and...

Notice I-15-07
January 23, 2015

Immediate attention required – Financial Requirements Section 12 – Additional increases in required minimum security deposit for forex transactions

As you know, on Jan. 21, 2015, NFA's Executive Committee exercised its authority under NFA Financial Requirements Section 12 and increased, until further notice, the minimum security deposits required to be collected and maintained by FDMs under Section 12 for transactions involving the Swiss franc (5%), Swedish krona (3%) and Norwegian krone (3%). At the time of those increases, NFA alerted FDMs that NFA was continuing to monitor market conditions and that the Executive Committee could decide to make additional increases to these or other currencies if market conditions warranted. Given the continued volatility in the foreign currency markets, the Executive Committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs under Section 12 as follows:

Major Currencies:

Japanese yen – 3%
Australian dollar – 3%

Other Currencies:

Russian ruble – 20%
Brazilian real – 9%
Mexican peso – 6%

These increases become effective at 5 p.m. (EST) on Monday, Jan. 26, 2015 and will remain in effect until further notice.

If you have any questions on these requirements, please contact Valerie O'Malley, Director, Compliance (vomalley@nfa.futures.org or 312-781-1290) or Rachel Brandenburg, Senior Manager, Compliance (rbrandenburg@nfa.futures.org or 312-781-1472).

Immediate attention required – Financial Requirements Section 12 – Increase in required minimum security deposit for forex transactions
Immediate attention required – Financial Requirements Section 12 – Additional increases in required minimum security deposit for forex transactions

 

[dkami]

Well, thanks for your response although i must say you seem a little agro, for what reason i cant imagine. Anyway, you seem to feel that it isnt a problem dealing with self confessed market makers which is great.
Enjoy your trading

Hehehehe can't provide any proof can you, now everyone knows on FPA you are full of yourself and know little to nothing about trading

We call people like you in Australia tall burners

 

[zarni]

NFA has always been a proponent of the futures industry and negative on forex. This is just another example of this.

 

[zarni]

That's one side of the coin. The other is that the real markets were largely nonexistent for CHF at the time. ICM just reflected the real markets. AXI on the other hand makes the markets. Just because price was shown there on the price doesn't necessarily mean that you would have got executed.

 

[dkami]

That's one side of the coin. The other is that the real markets were largely nonexistent for CHF at the time. ICM just reflected the real markets. AXI on the other hand makes the markets. Just because price was shown there on the price doesn't necessarily mean that you would have got executed.

A low of 0.02178 on AUDCHF with ICM is not a reflection of the real markets price!

ICM have even said they have to adjust the chart, when they get time

AxiTrader on the other hand low on AUDCHF was 0.68488 reflecting the correct prices with no big wicks down, massive spreads ect,ect!

If AxiTrader is anything but a ECN broker with segregated clients accounts that's stated clearly on there website, please provide proof as I would be more than happy to see it!