NFA issues a Notice about MF Global; Canadian forex clients have another option now

All the MF Global saga has left us wandering what will happen to accounts of many Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term traders. According to the latest Forex Magnates survey MF Global processes $20 Billion monthly retail forex volume meaning there it has quite a few retail Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term customers. MF Global Canada was using FXCM's Trading Station II and MT4 platforms in a semi White Label way. Since then FXCM managed to partner with Friedberg Direct which will offer its platforms to Canadian clients from now on. This allows MF Canada clients to jump ship and keep using same platform but with a different broker (that is if they are able to extract their funds from MF).

Notice I-11-19 November 07, 2011

Treatment of Assets Held with MF Global, Inc. and Affiliated Entities

FOR FULLY DISCLOSED FCMS AND INDEPENDENT IBs ONLY--A RESPONSE IS REQUIRED FOR ALL MEMBERS IN THESE CATEGORIES

MF Global Holdings, Ltd, the holding company for MF Global, Inc. and other affiliated entities (MF Entities), filed for bankruptcy protection on Monday, October 31, 2011. As a result, effective Friday, November 4, 2011, certain receivable balances with MF Entities, including commission and security deposit receivables, must be reflected as a non-current / non-allowable asset for regulatory capital reporting purposes. Further, proprietary trading accounts with MF Global, Inc. that are included in a customer segregation account at MF Global, Inc. must be reflected at 60% of the account balance (net liquidating value plus securities on deposit). For dually registered FCM-Broker/Dealers and IBI-Broker/Dealers, please contact your DEA or the SEC for regulatory capital reporting requirements.

In light of the circumstances, NFA is requiring you to answer at a minimum the first question on NFA's questionnaire, https://www.nfa.futures.org/NFA-electronic-filings/annual-questionnaire.HTML, asking whether your firm has any deposits at MF Global. If your answer is no to the first question you have completed this requirement. If your answer is yes, you must also complete the additional questions regarding the specific balances held at MF Global.

Finally, if your firm has any balances with MF Entities you are also required to submit a pro-forma 1-FR or FOCUS filing as of October 31, 2011 reflecting the capital treatment as disclosed above. This statement is due by November 10, 2011 by 12:00 pm CST.

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