Retail FX and FDMs


This topic page focuses on "retail foreign exchange transactions ("Retail FX") and entities that deal in such transactions, who may be referred to as "Retail Foreign Exchange Dealers" ("RFDs") or "Forex Dealer Members" ("FDMs"). (The term FDM, which is used primarily by the NFA as one of its membership categories, includes both CFTC-registered RFDs and certain other NFA members that enter into transactions described in NFA ByLaw 1507(b).

Retail FX transactions are primarily regulated by the CFTC and the NFA, and by the banking regulators. The SEC had briefly adopted a Rule (SEA Rule 15b12-1) related to such transactions, but then rescinded the rule.

Material on the more general issue of jurisdiction over FX transactions, and whether certain FX transactions are considered to be "swaps," in on the Currency Jurisdiction Page.




CFTC Rules


NFA By-Laws Defining FDMs

NFA Financial Requirements