NFA Interpretive Notices on Advertising Practices - Applicable to NFA Forex Members
Earlier we discussed a release by the NFA in which they expressed the desire to apply the NFA Compliance Rule 2-29 to current NFA Members who are involved in the off-exchange forex markets (see NFA Proposes Rule 2-29 Apply to Forex Members). We believe that the CFTC will approve the NFA’s request and thus certain [...]
Discussion of NFA Compliance Rule 2-29 (Forex Advertising)
NFA Compliance Rule 2-29 is important right now for those commodity pool operators and commodity trading advisors who also trade in the spot forex market. If the CFTC approves a rule adjustment by the NFA (see NFA Announces New Forex Rules), such CPOs and CTAs (who are NFA members) will need to make sure that [...]
NFA Makes Two Separate Announcements on New Forex Rules
(www.hedgefundlawblog.com) Today the NFA made two separate announcements regarding proposed new forex rules. The announcements follow a series of similar announcements last week regarding new forex rules (see NFA Continues to Pursue Forex Regulation for Current Forex Dealer Members). The first announcement dealt with additions to Compliance Rule 2-36 and related Interpretive Notice Changes. The [...]
Forex Managers and Managed Forex Funds
Many forex managers use a product called a managed forex fund, which is the equivalent to a mutual fund hedge fund. In a “managed forex fund,” the manager will invest the assets under the POA with the forex dealer member in the managed fund. The a trader or traders for the forex dealer member will [...]
NFA Continues to Pursue Forex Regulation for Current Forex Dealer Members
Two new releases indicate that the NFA is serious about regulating the off-exchange foreign currency markets
On our sister website, www.forexlawblog.com, we have detailed the continued regulatory actions by the NFA with regard to the current regulation of the off-exchange forex markets. The two notices, described in further detail below, apply to Forex Dealer Member and [...]
CPOs and CTAs have Until November 30 to update Disclosure Documents if they trade Forex
As we announced earlier, the NFA promulgated rules which were approved by the CFTC which gave the NFA jurisdiction over retail off-exchange foreign exchange trading by its member firms. What this essentially means is that if:
(i) you are currently a NFA member (e.g. you have a commodity/ futures pool or direct commodity/ futures accounts) and
(ii) [...]
Forex Hedge Funds – Forex Commodity Pools
This is a guide for those managers who want to start a forex hedge fund. It provides information on forex hedge fund structures, an overview of the registration requirements, and a discussion of the process of forming a forex hedge fund. For the purpose of this article we are focusing on spot forex transactions, but [...]
NFA Releases More Information on Forex Registration
(www.hedgefundlawblog.com in conjunction with www.forexregistration.com)
The NFA released more information on the Forex registration requirements for Forex CPOs, Forex CTAs and Forex IBs (release is here). The NFA specifically notes that the CFTC has not yet completed writing the registration requirements so there is not date set for registration.
With regard to the registration process, individuals will [...]
What is Forex? Information on Retail Off Exchange Foreign Currency Transactions
(www.hedgefundlawblog.com in conjunction with www.forexregistration.com)
Forex Overview
Forex or FX or retail off-exchange foreign currency transactions all refer to the same thing – trading foreign currencies for gain, usually in the spot market. The Forex markets have grown tremendously over the last few years and both individual investors and money managers are trading foreign currencies to make [...]
Submitting Forex Disclosure Documents to the NFA
As we have mentioned before the CFTC and the NFA have not released the information regarding the forex registration requirements, but in the interest of preparing forex managers for the coming registration, we are providing an overview of the likely requirements and the process to become a fully compliant Forex CPO or Forex CTA. Pursuant [...]
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