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Gerald Segal is a Managing Director at LeapRate, which provides analysis of the Online Forex Trading world. Gerald's reports are a leading source of information on the size, growth and regulation of the Online Forex industry. Prior to founding LeapRate Gerald was an investment banker for 18... More

My company:: LeapRate
My blog:: LeapRate's Forex Industry News

NFA Vs. FXDD, GFT And "Negative Excess Capital" – The Real Story 0 comments

Jan 16, 2013 1:45 PM | about stocks: AMP, AMTD, BAC, BBD, BBVA, BCS, BGCP, BK, BMO, BNS, BTFRF.PK, C, CM, CME, CS, DB, DJ, ETFC, FB, FTGI.PK, FXCM, GCAP, GS, HBC, IAPLF.PK, IAPLY.PK, IBKR, IGGRY.PK, JEF, JPM

A no-warnings, overnight interpretation decision by the NFA led to some scrambling by otherwise well-capitalized FX brokers.
As several other blogs noted over the past two days, the CFTC's monthly data for November on the capitalization of regulated U.S. retail FX dealers showed negative "Excess Net Capital" for two FX brokers, FXDD (minus $3.7 million) and GFT (minus $15.5 million). It was erroneously noted in those blogs that the deficit at FXDD was due either to $3.3 million which FXDD had to deposit in escrow as it fights certain NFA claims (it wasn't connected, that event didn't occur until the first week of December), or a rule interpretation change governing pooling of funds from foreign subsidiaries (again, off the mark).
So what really happened? For more details see LeapRate's Forex Industry News at leaprate.com.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

Themes: NFA, CFTC, FXDD, GFT, retail Forex regulation, minimum capital Stocks: AMP, AMTD, BAC, BBD, BBVA, BCS, BGCP, BK, BMO, BNS, BTFRF.PK, C, CM, CME, CS, DB, DJ, ETFC, FB, FTGI.PK, FXCM, GCAP, GS, HBC, IAPLF.PK, IAPLY.PK, IBKR, IGGRY.PK, JEF, JPM

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NFA Vs. FXDD, GFT And "Negative Excess Capital" – The Real Story 0 comments

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