ActForex releases a solution for new Japanese Margin Requirements

Just in time with the new 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 requirements kicking in the day after tomorrow (August 1st, 2010), which Oz Golan mentioned here last week, ActForex is releasing that it has embedded this functionality in its platform.

ActForex, Inc, the leading provider of independent retail Forex trading platforms, today announced the creation of Margin Requirement as a Percent of Trade Notional Value functionality, just in time for new regulations taking effect in Japan on August 1.

This Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term enhancement automatically calculates the margin requirement for opening and keeping the position open based on its current value. The margin will be recalculated in real time at every price change, ensuring that the trader’s positions are continuously leveraged at a permanent rate. The ActForex solution, developed specifically for calculating margins, guarantees the constant leverage that will soon be required by law from Japanese Forex brokers.

For brokers outside of Japanese jurisdiction, ActForex trading platforms always allow flexible system configurations, which can be used for setting simple fixed margins in account currency, a popular feature among retail FX clientele.

“We stay on top of changing compliance issues and create technology that helps our clients to fulfill their applicable regulatory requirements,” says Ilya Sorokin, CEO of ActForex. “I believe we will see many more requirements from governmental agencies worldwide in the near future and having a technology provider that is responsive is absolutely essential these days.”

“Worldwide our licensees provide 450,000 traders with ActForex technology so we take our responsibilities very seriously. We were the first to introduce a solution for the NFAs’ FIFO and No-Hedging rules last year,” Sorokin continued. “So having introduced one of the very first retail FX trading platforms ten years ago and many innovations along the way, clients rely on us to protect their interests. Our expertise in Forex and other financial instruments incorporated into ActForex’s highly flexible trading platform allows our clients to concentrate on their business, while being compliant with regulations.”

Some other trading technology providers currently offer limited functionality to address coming Japanese regulations, which simply uses a position’s opening rate to calculate the fixed margin. Such margin stays fixed for the lifetime of a position. Since in the real market the position value constantly changes with each tick, the other methods of providing this functionality do not provide constant leverage. Ultimately these alternatives to the ActForex solution do not comply with the FSA’s upcoming leverage requirements, according to Japanese compliance specialists.