Notices to Members

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Notice I-10-24

November 10, 2010

New Financial Reporting Requirements for NFA Forex Dealer Members

The CFTC's new Part 5 Regulations, which impose additional financial reporting obligations on certain Futures Commission Merchants (FCMs) that act as the counterparty to retail forex transactions and Retail Foreign Exchange Dealers (RFEDs), became effective on October 18, 2010. As a result, FCMs and RFEDs who are Forex Dealer Members (FDMs) of NFA must include the following additional information on the Exchange Supplementary Schedule of the CFTC Form 1-FR-FCM financial filings as of October 31, 2010:

  • Gross revenue from forex transactions with retail customers;
  • Total net aggregate notional value of all open forex transactions in retail customer and non-customer (not proprietary) accounts;
  • Total aggregate retail forex assets;
  • Total amount of retail forex obligations; and
  • Retail forex related minimum dollar amount requirement.

After providing the above information on the Exchange Supplementary Schedule, FDMs should proceed to the Statement of Computation of the Minimum Capital Requirement on the CFTC Form 1-FR-FCM. FDMs should complete line item 22.B, which asks for the minimum dollar amount requirement for firms that offer to act as the counterparty to retail forex transactions. FDMs should enter $20 million in line item 22.B. FDMs will only need to enter $20 million in the October 31, 2010 filing since $20 million will auto-populate in future filings. In addition, in line item 22.C, FDMs should enter the net capital requirement which was reported in line item 13.C on the Exchange Supplementary Schedule. This figure should be the initial requirement of $20 million, plus 5% of the total retail forex obligation in excess of $10 million.

For more information concerning the changes to financial reporting requirements for NFA Forex Dealer Members, please contact Sarah A. Walsh, Field Supervisor, Compliance ( or 312-781-1202) or Sharon Pendleton, Director, Compliance ( or 312-781-1401).

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