Forex registration was not a requirement in the past, but on May 22, 2008, Congress passed the CFTC Reauthorization Act of 2008 as part of the Farm Bill which created registration requirements for any firm that acts as a counterparty to forex contracts. On January 14, 2010, the CFTC put out a press release announcing the proposed new rules for registration. On January 20, 2010, the proposal was published into the Federal Register, and the public will have 60 days from this date to submit comments regarding the new rules to the CFTC. The comment period ceases on March 22, 2010, after which we should have a better idea of when the new rules will go into effect.
In addition to the new registration requirements, the CFTC has proposed three other major rules:
1) Minimum capital requirement for FCMs and RFEDs: $20 million plus 5% of the amount by which retail forex customers exceed $10 million;
2) Leverage restriction: 10:1 leverage maximum on all forex transactions; and
3) Introducing brokers guaranteed: introducing brokers (IBs) will need to be guaranteed and can no longer be independent.
How can I submit my comments to the CFTC regarding the new proposals?
You may submit comments, identified by RIN 3038–AC61, by any of the following methods:
- Federal eRulemaking Portal: http://www.regulations.gov/search/index.jsp. Follow the instructions for submitting comments.
- E-mail: secretary@cftc.gov. Include ‘‘Regulation of Retail Forex’’ in the subject line of the message.
- Fax: (202) 418–5521.
- Mail: Send to David Stawick, Secretary, Commodity Futures Trading Commission, 1155 21st Street, NW., Washington, DC 20581.
- Courier: Same as Mail above.
All comments received will be posted without change to http://www.cftc.gov, including any personal information provided.