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U.S. Treasury Exempts FX Swaps From Dodd-Frank Regulation

U.S. Treasury Exempts FX Sw...

Foreign exchange (FX) swaps, the second largest derivatives trading market, is been exempted from Dodd-Frank regulation by the U.S. Treasury. Though some Democratic legislators criticized the move, the Treasury went forward with the exemption citing the high-levels of risk management inherent in FX trading. “Unlike other derivatives, FX swaps and forwards already trade...

FX Swaps Exempted by Treasury: Controversial Move

FX Swaps Exempted by Treasu...

FX swaps represent the second largest derivatives trading market. Today they were exempted from Dodd-Frank regulation by the U.S. Treasury. Though some Democratic legislators criticized the move, the Treasury went forward with the exemption citing the high-levels of risk management inherent in FX trading. “Unlike other derivatives, FX swaps and forwards already trade in...

CFTC approves NFA amendment for retail forex rules for CTAs, FCMs and RFEDs

CFTC approves NFA amendment...

On April 18, the CFTC approved an amendment proposed by the NFA on allocation procedures for retail forex customer accounts affecting Commodity Trading Advisors (CTAs), Futures Commission Merchants (FCMs), and Retail Foreign Exchange Dealers (RFEDs). The rule will be implemented when the dealer allocates bunched orders for multiple customers. CTAs that place orders at...

Dodd-Frank amends permitted RFED counterparties

Dodd-Frank amends permitted...

The CFTC has updated its code to reflect changes in the Commodities Exchange Act mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. CFTC Regulation 5.1(h) defines the term “retail foreign exchange dealer” (“RFED”) as “any person that is, or that offers to be, the counterparty to a retail forex transaction, except...

Registration with CFTC and NFA

Preparation of all NFA registration forms
Customize policies and procedures
Liaison with the regulators throughout the registration process
Registration categories: RFED, FCM, IB, CTA & CPO
Preparation of disclosure documents for CTAs

Regulatory Enforcement & Representation

NFA Business Conduct Committee (BCC) actions, not limited to the following allegations:

Carrying accounts by a non-member
Failure to supervise
Anti-Money Laundering violations
Inadequate policies and procedures
Representation and defense against Business Conduct Committee (BCC) actions
Failure to implement a business disaster continuity and recovery plan
Failure to observe high standards of commercial honor
Sales practice violations
Cheat, fraud and deceive customers
Hypothetical forex results disclaimer
Promotional materials containing hypothetical results
NFA Member responsibility actions
CFTC enforcement actions and investigations

Audit Preparation

We prepare you for CFTC and NFA audits
Customized mock audit
NFA Checklist overview and assessment with recommendation how to property comply with FX rules
Representation during NFA audit
Representation and defense against Business Conduct Committee (BCC) actions
Investigation counseling

Policies and Procedures

We prepare custom policies and procedures to fit your business model, including policies on:

Anti-Money Laundering (AML)
Promotional Material and Supervision
Enhanced Supervision
Business Disaster, Continuity and Recovery Plan (BDCRP)
Privacy Policy
Electronic Trading Systems

CFTC / NFA Rules & Regulation

Full service compliance with FX rules and regulations
Assistance in understanding FX rules and interpretive notices
Comment letters in response to FX rules proposals