Notices to Members

April 10, 2013

Effective Date of Amendments to NFA Financial Requirements Section 1(a) - Adjusted Net Capital Requirement for FCMs Acting as a Counterparty to Forex Transactions with Eligible Contract Participants (ECPs)

NFA Financial Requirements Section 1(a) requires FCMs to maintain adjusted net capital equal to or in excess of the greatest amount calculated under a number of alternatives as applicable to the FCM. The Commodity Futures Trading Commission has approved an amendment to NFA Financial Requirements Section 1(a), which sets forth an alternative minimum adjusted net capital requirement that applies to an FCM that acts as a counterparty to a forex transaction with an ECP. Specifically, the amendment includes a provision that requires an FCM that acts as a counterparty to a forex transaction with an ECP to maintain adjusted net capital of at least $20,000,000. The $20,000,000 requirement is the absolute minimum requirement for those FCMs as they remain subject to the other applicable alternative calculations set forth in Financial Requirements Section 1(a), which may result in a higher adjusted net capital requirement. This amendment to NFA Financial Requirements Section 1(a) becomes effective June 30, 2013.

More information on this amendment can be found in NFA's November 20, 2012 Submission Letter to the Commodity Futures Trading Commission. Questions concerning this change should be directed to Sarah A. Walsh (sawalsh@nfa.futures.org or 312-781-1202).