NFA Forex Dealer Members must meet higher net capital requirements

Many of the U.S. firms currently offering retail off-exchange foreign currency (forex) trading are Members of NFA. Effective December 21, 2007, these firms must maintain a minimum net capital requirement of $5 million.

"Because a Forex Dealer Member's activities create greater financial risks than the type of traditional exchange-traded futures and options, these firms need to maintain a larger amount of capital," says NFA General Counsel Tom Sexton. "We believe that this additional net capital requirement will provide better customer protection."

All Futures Commission Merchants, including Forex Dealer Members, are required to submit monthly financial statements to the Commodity Futures Trading Commission. The CFTC compiles this information and posts it on its Web site (www.cftc.gov).

In addition, Forex Dealer Members submit weekly financial statements to NFA so that NFA can closely monitor the firms' financial status.
Remember that forex trading is a high-risk venture. NFA offers several resources to help you understand the risks of forex trading, including a brochure, an online learning program and a forex investor alert. In addition, individuals should always check the registration status of any forex firm (using NFA's online Background Affiliation Status Information Center) before opening an account.


Recent Enforcement Actions

In the fourth quarter of 2007, NFA's Business Conduct Comittee issued Decisions, Member Responsibility Actions and Final Orders in Registration Cases against the following NFA Member firms and individuals. Click on the name for more detailed information.


Decisions in Disciplinary Cases

American National Trading Corp.
H. Tony Cantillo
Christ Investment Service LLC
Steven D. Erdman
Karl A. Flowers
Thomas E. Fritz
Lee A. Gaus
Globalprice Inc.
Hamilton Williams LLC
Molly Lau
Mansur Capital Corporation
Justin J. Marsch
New World Holdings LLC
One World Capital Group LLC
Stephen T. Roy
Royal Forex Trading LLC
Jack Schenker
Solid Gold Financial Services Inc.
Tradeco Clearing Group LLC
Michael Vardanian
Don Varden
John E. Walsh
Guy Zummo

Member Responsibility Actions

Forex Liquidity LLC
One World Capital Group LLC

Final Orders in Registration Cases

Sean E. Feighan
Beata Geigalaite Vachula
James A. Grzetich
John Logan
Alexander Rust


© 2008 National Futures Association