Confirm Manage account. Forward Share Print. Among other things, the rule amendments: impose additional capital requirements on FDMs; require FDMs to collect security deposits for off-exchange foreign currency transactions from both eligible contract participant counterparties and retail counterparties; require FDMs to adopt and implement more stringent risk management programmes; and require FDMs to provide additional market disclosures and firm-specific information on their websites.
In her statement, Bowen further stated that the CFTC should consider imposing additional regulations on retail foreign exchange dealers RFEDs , including: imposing concentration charges on RFEDs if they are overly exposed to a particular currency pair or liquidity provider, to incentivise them to balance their — and their retail counterparties' — positions; requiring RFEDs to get the best possible prices for their retail counterparties; and requiring or incentivising RFEDs to clear, in order to lower the credit risks that retail foreign exchange investors face.
Retail Foreign Exchange Dealer (RFED)
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Managers must also be aware that there are forex examination requirements. Specifically, all associated persons will need to have a Series 3 exam license generally for futures trading and a new Series 34 exam license for forex only managers. Cover Page. Front Cover Disclaimer. Inside the front cover the Forex disclosure document there will need to be a few paragraphs that serve as a general disclaimer of risk disclosure statement. This disclaimer will be based on a uniform template for all Forex disclosure documents. Basic Background Information.
Forex Dealer Members (FDM) | NFA
The beginning part of the document will need to include such basic information as name of the Forex CPO or CTA, addresses, phone numbers, etc. The information each of the people will need to provide includes: date of NFA membership, date of CFTC registration, and dates of employment for last five years.
Forex Dealer Member. Forex Introducing Brokers.
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Principal Forex Risk Factors. Such risks are expected to include: country or sovereign risk, credit risk, exchange rate risk, interest rate risk, liquidity risk, market risk, operational risk, settlement risk and Herstaat risk. In addition, for Forex CPOs, there are other risks involved in the structure of the investment vehicle which will need to be disclosed.
Forex Trading Program.
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All aspects of the proposed trading program must be disclosed and discussed. A Forex trading program will usually include information on the investment object and the investment strategies as well as a discussion of the risk management procedures the Forex manager will utilize. Therefore, trading is most active from pm, when the US and UK markets overlap, to am Korea time next day. In an FX margin transaction, when an individual investor places an order through a domestic broker or an Introducing Broker, the order is transferred to a bank through a Forex Dealer Member FDM We trade orders with other banks in the market Interbank Market.
Due to the large number of buyers and sellers, these pairs typically show tight spreads. Market Status and Scale The foreign exchange market was originally a limited market where international interbank transactions were dominant. Market Structure In an FX margin transaction, when an individual investor places an order through a domestic broker or an Introducing Broker, the order is transferred to a bank through a Forex Dealer Member FDM We trade orders with other banks in the market Interbank Market. Sign in with your username.