In order to get things going NFA will start accepting new applications today and which is only 6 weeks before the CFTC deadline. Good luck to all new registrants who will have to stop doing business after October 18th until they get the approval which is expected to take a while due to massive amount of new applications.
The Commodity Futures Trading Commission has issued final Forex rules which become effective on October 18, 2010. NFA will begin accepting registration applications from forex firms and individuals beginning Thursday, September 2.
Any retail forex entity that does not complete the registration process by October 18, 2010 will be unable to conduct retail forex business until registration and all necessary approvals and designations are granted.
As part of the reauthorization of the CFTC in May 2008, Congress amended the Commodity Exchange Act to require, with certain exceptions, including a Futures Commission Merchant (FCM) acting primarily or substantially as a traditional FCM, any firm acting as a counterparty to certain retail forex transactions to register as a Retail Foreign Exchange Dealer (RFED).
Consequently, any existing Forex Dealer Member of NFA that is currently registered as an FCM must register as an RFED unless the firm's business is primarily or substantially that of a traditional FCM. Moreover, even if the firm's business is primarily or substantially that of a traditional FCM, the firm must access NFA's Online Registration System (ORS) and request approval as a Forex Firm and designation as a Forex Dealer Member.
The Commodity Exchange Act was also amended to require any individual acting as a forex solicitor, account manager or pool operator to register with the CFTC as Introducing Brokers (IBs) ), Commodity Trading Advisors (CTAs) or Commodity Pool Operators (CPOs) and become Members of NFA. Also, any Associated Person (AP) soliciting or supervising persons soliciting business on behalf of a forex firm must request approval as a Forex AP.
The rest here.
