Practical guidance for CTA and CPO firms Commodity Trading Advisors (CTAs) and Commodity Pool Operators (CPOs) have been contacting me with greater regularity and we have decided to provide those firms with more detailed information on their registration and compliance requirements. Over the course of the next few weeks we [...]

Answers Regarding Prohibition of Hedging Spot Forex Transactions (www.hedgefundlawblog.com)  The NFA has certainly taken a lot of heat over its controversial rule to ban the practice of “hedging” in a single spot forex account.  Many retail investors have already begun establishing brokerage accounts offshore in order to utilize this trading [...]

NFA Compliance Rule 2-43 Outlaws Forex “Hedging” For NFA Registered Forex Dealers (www.hedgefundlawblog.com) The new forex regulations have affected the industry in a number of ways.  Rule 2-43 especially has been a source of ire for some forex managers who have utilized a “hedging strategy” as part of their investment [...]

[http://www.hedgefundlawblog.com] No New Information on Forex Regulations I have been getting more and more questions regarding forex registration and unfortunately I have not had much to say because there has been little information coming from the CFTC.  The NFA has done a good job of anticipating what those rules will [...]

Below are a list of the articles which are devoted to forex hedge funds and the regulations involved in the off-exchange foreign currency markets.  Please contact us if you would like to start a forex hedge fund or if you would like information related to the forex registration requirements. Forex [...]

By Bart Mallon, Esq. www.series34exam.com Discussion about How to Take and Pass the Series 34 Exam On Thursday I took the Series 34 Exam and I passed.  I answered 30 out of 40 questions correctly for a 75% (it takes a 70% score to pass).  This score is not as [...]

(www.hedgefundlawblog.com) Creating Series 34 Exam Prep Materials One central issue in the investment management industry is increases in regulation of previously unregulated or lightly regulated activities.  The major area which will see direct regulation within the next 12 months is the retail off-exchange foreign currency industry.  As we have discussed, [...]

New Forex Product Launched by CME As the CFTC continues to work on promulgating rules which would require forex managers to register (the so called new forex registration rules), the CME has introduced a new forex product called the Forex E-micro which is geared towards the retail forex investor.  It [...]

Comments on Proposed Retail Forex Rules Sought The Finanacial Industry Regulatory Authority (FINRA) requested comments on a proposed rule to limit the leverage available to retail investors trading in the off-exchange foreign currency (forex) markets.  The proposed rule would be applicable to FINRA member firms and would limit leverage in [...]

Forex Firm Caught Operating a Ponzi Scheme The CFTC just announced that it charged a group out of Atlanta with operating a Ponzi scheme.  This is the first action the CFTC has brought against a forex firm for fraud.  At the beginning of last year Congress passed the Farm Bill [...]