NFA - Amendments to Interpretive Notice Concerning Compliance - Retail Forex Transactions

An overview of the NFA compliance requirements applicable to Retail Forex Transactions involving NFA members. [SL Comment: should be closely reviewed by all firms involved in Forex. Even for other CFTC-regulated entities, the Notice provides some guidance as to the questions that may be asked by the regulators as to particular issues; e.g., whether a person is qualified to serve as a supervisor.] According to the NFA, this notice has three sections. The first section explains who qualifies as a Forex Dealer Member under NFA Bylaw 306 (which creates a Forex Dealer Member category for NFA Members who act as counterparties to forex transactions with retail customer); the second section provides additional guidance about the requirements in Compliance Rule 2-36; and the third section covers miscellaneous requirements.

Cross Reference(s): NFA Bylaw 306; NFA Compliance Rule 2-36.

View release in full here (links externally to NFA website).