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Proposed Rule

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PROPOSED AMENDMENTS
(additions are underscored and deletions are stricken through)

INTERPRETIVE NOTICES

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FOREX TRANSACTIONS WITH FOREX DEALER MEMBERS

INTERPRETIVE NOTICE

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C. OTHER REQUIREMENTS

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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.

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