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August 2007

Regulation: US capital ruling could kill off smaller dealers

by Lee Oliver and Chloe Hayward

If, as expected, US regulator the National Futures Association implements a proposal it has sent out to its 43 forex dealer members (FDMs), the result will be that many firms will have to attract fresh funding or close down.


Proposed NFA rules seen as catalyst for consolidation in US retail: The Weekly FiX

The proposal is due to be discussed by the NFA’s board in August. If ratified, it will then go to the Commodity Futures Trading Commission, which effectively acts as the NFA’s gatekeeper. The CFTC will almost certainly rubber-stamp it.

Up to $5 million

In its proposal, the NFA points out that the under-capitalization of many FDMs is the main cause of many of the...


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