NFA Announces Effective Date for Amended Rules of Trade Costs Disclosure

The National Futures Association (NFA), a self-regulatory organization for ‎the US derivatives industry, today said that the nation’s commodity regulator ‎has approved its amendments to disclosure rules of retail 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 costs. ‎

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The recent amendments, which will take effect on April 5, 2018, requires ‎forex dealer members to provide additional trade disclosures and firm-specific ‎information that include commissions and any other fees. Last month, NFA ‎submitted the proposed rule amendments to the CFTC for review. ‎

The amended rule would require STP forex brokers, upon client demand, to ‎disclose the full breakdown of any mark-ups or mark-downs they impose on the ‎price they have received to execute the customer's orders. For non-STP model, the ‎broker must disclose the mid-point spread cost, which the NFA defines as the ‎difference between the price of order Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and the mid-point of the bid/ask ‎spread at the time of the order execution.‎

Additionally, forex dealers in the US must prominently display a notice on ‎its website informing customers of their ability to request this information.‎