Forex Managers Required to be Registered Under New Regulations
The much anticipated off-exchange retail foreign currency regulations were proposed today by the CFTC. The release announcing the publication in the Federal Register is reprinted below and can be found here. We will be providing an overview of the major provisions shortly.
State Securities Agency Calls PAMM Accounts Securities
Forex investment managers who offer forex separately managed account programs need to be aware of the risks of offering trading programs which use PAMM accounts. PAMM accounts are functionally equivalent to “bunched” or “batched” order master accounts which are common at most futures comission merchants for futures and commodities trading. However, there is the risk that PAMM accounts could be deemed to be “securities” under state securities laws.
