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For more information contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org

NFA takes additional enforcement action against Spot FX Clearing Corp.

November 3, Chicago - National Futures Association has issued additional sanctions against Spot FX Clearing Corp., a Forex Dealer Member located in Las Vegas, Nevada. Unless Spot FX demonstrates to NFA that it has met a super capital requirement of $1.5 million by November 9, 2006, NFA will suspend Spot FX from NFA membership. Spot FX would then be required to promptly liquidate all positions in customer accounts and remit the proceeds of any liquidation to the appropriate customers immediately.

NFA issued its initial emergency enforcement action against Spot FX on October 4, 2006, imposing certain conditions and restrictions based on the firm's failure to demonstrate compliance with NFA Financial Requirements. Despite representations made by the firm that it would demonstrate compliance since October 4, Spot FX has not done so and has also failed to demonstrate that it has adequate internal controls and accurate financial records and reports.

Should Spot FX meet the conditions of the November 9 deadline, the firm would still have to comply with other conditions and restrictions, including providing NFA with an internal control report and certified financial statements which are prepared by an independent public accountant. The firm must also remove its account opening forms from the Internet Web site of Coes FX, a foreign currency trading platform provider.

Spot FX can request a hearing before NFA's Hearing Committee and may petition the Commodity Futures Trading Commission for a stay of NFA's enforcement action.

The complete text of the amended Member Responsibility Action can be found on NFA's Web site (www.nfa.futures.org).

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