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January 11, 2008
NFA reports four forex firms have ceased operations in light of increased capital requirements
January 11, Chicago - National Futures Association (NFA) announced today that four of its Forex Dealer Members (FDMs) have ceased operations as a result of NFA's new $5 million capital requirement, which became effective on December 21. In addition, six additional FDMs have ceased operating since September 1, 2007.
"When NFA's Board of Directors adopted the increased capital requirement on August 15, 2007, NFA had 34 registered FDMs," said Regina Thoele, vice-president of Compliance. "As of December 31, 2007, that number has decreased to 24."
The four firms that were unable to meet the new capital requirement and ceased operating transferred their customer accounts to other FDMs.
"We closely monitored each of the firms to ensure that customer funds were transferred to another, fully-capitalized firm," says Thoele.
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the derivatives markets.