NFA Amends FCM Capital Requirements for Forex Transactions with ECPs

The National Futures Association (NFA) has amended the financial requirements applicable to member futures commission merchants (FCMs) acting as counterparties in foreign exchange (forex) transactions. Pursuant to NFA’s Financial Requirements Section 1(a), all member FCMs are required to maintain adjusted net capital equal to or in excess of certain amounts enumerated in Section 1(a). The amendment adds a provision to Section 1(a) to require an FCM acting as a counterparty in a forex transaction with an eligible contract participant to maintain adjusted net capital in excess of $20,000,000.

The amendment will be effective June 20, 2013.

NFA Notice to Members I-13-10 is available here. NFA Financial Requirements Section 1(a) is available here.

 

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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