PROPOSED AMENDMENTS
(additions are underscored and deletions are stricken through)
INTERPRETIVE NOTICES
* * *
FOREX TRANSACTIONS WITH FOREX DEALER MEMBERS
INTERPRETIVE NOTICE
* * *
C. OTHER REQUIREMENTS
* * *
1. Bylaw 1301
Forex Dealer Members are not required to pay assessment fees on retail off-exchange forex transactions. Instead, NFA Bylaw 1301(e) imposes annual dues that are graduated according to the firm's gross annual revenue from customers (e.g., commissions, mark-ups, mark-downs) for these activities. Profits and losses from proprietary trades are not to be included. To calculate dues:
- Start with the FCM dues imposed by NFA Bylaw 1301(b)(ii);
- Add $14,375 if the Forex Dealer Member's gross annual revenue from acting as counterparty to retail forex transactions is $500,000 or less;
- Add
$7,500 $24,375 if the Forex Dealer Member's gross annual revenue from acting as counterparty to retail forex transactions is more than $100,000 $500,000, but not more than $2,000,000; and
- Add $44,375 if the Forex Dealer Member's gross annual revenue from acting as counterparty to retail forex transactions is more than $2,000,000, but not more than $5,000,000; or
- Add $94,375
an additional $5,000 if the Forex Dealer Member's gross annual revenue from these activities is more than $1,500,000 $5,000,000.
For example, a Forex Dealer Member with annual revenue in excess of $1,500,000 for which NFA is the designated self-regulatory organization would pay annual dues of $18,125, calculated as follows:
Annual dues for an FCM for which NFA is the DSRO |
$ 5,625 |
Plus amount for forex revenue over $100,000 |
7,500 |
Plus amount for forex revenue over $1,500,000 |
+ 5,000 |
Total dues |
$18,125 |
The following table shows the dues to be assessed for Forex Dealer Members:
|
Amount of annual Gross Revenue From Off-Exchange Retail Forex Transactions |
Dues if NFA is the DSRO
|
Dues if NFA is not the DSRO
|
| $500,000 or less |
$20,000 |
$15,875 |
| More than $500,000, but not more than $2 million |
$30,000 |
$25,875 |
| More than $2 million, but not more than $5 million |
$50,000 |
$45,875 |
| More than $5 million |
$100,000 |
$95,875 |
The dues will be assessed on the firm's membership renewal date and will be based on the Forex Dealer Member's latest certified financial statement.
|
