NFA Proposes to Amend Financial Requirements Rule Regarding Covering Liabilities to Retail Forex Customers
The NFA submitted a proposed rule to the CFTC to amend NFA Financial Requirements Section 14 regarding daily confirmation of funds covering liabilities to retail forex customers.
The NFA is amending Section 14 to require each Forex Dealer to instruct each qualifying institution that holds assets used to cover its liabilities to retail forex customers to report the daily balances in accounts to the NFA or a third party designated by the NFA. Additionally, the proposed rule specifies that in order to be an acceptable qualifying institution to hold such assets, the qualifying institution must report the balances to the NFA or a third party designated by the NFA.
The NFA invoked the "ten-day" provision of the CEA and intends to make the proposed amendments effective 10 days after receipt of the proposed rule submission by the CFTC, unless the CFTC indicates otherwise.