U.S. regulated Forex Dealer Members

[fx1001]

U.S. regulated Forex Dealer Members required to execute trades on a first-in-first-out basis

(FIFO) as per Compliance Rule 2-43 (b).

 

Effective after July 31, 2009, the National Futures Association (NFA) will require all U.S. regulated Forex Dealer Members to execute trades on a first-in-first-out basis (FIFO) as per Compliance Rule 2-43 (b). FIFO requires that when multiple positions are held on the same currency pair, the position that was first opened will be the first to be closed.

 

As a result, forex traders will no longer have the ability to selectively place stop-loss or limit orders on individual trades, nor will traders be able to modify or close trades from the “Open Positions” window.

 

The NFA’s stance is that FIFO provides more transparency to customers, offering a more accurate picture of the P/L on multiple positions than viewing results of individual positions. This also brings the forex market more in line with the practices of the futures and equities markets.

*********

 

One more privilege for the cheaters.

[Starting]

Re: U.S. regulated Forex Dealer Members

 

fx1001,

 

Can you explain how quoted below comes from this new regulation I posted very below:

As a result, forex traders will no longer have the ability to selectively place stop-loss or limit orders on individual trades, nor will traders be able to modify or close trades from the “Open Positions” window.

Couldn't figure out myself, maybe English speaking friends can help.

 

 

Part 2 - RULES GOVERNING THE BUSINESS CONDUCT OF MEMBERS REGISTERED WITH THE COMMISSION

 

* * *

 

RULE 2-43. FOREX ORDERS.

 

(a) Price Adjustments

 

(1) A Forex Dealer Member may not cancel an executed customer order or adjust a customer account in a manner that would have the direct or indirect effect of changing the price of an executed order except when:

 

(i) the cancellation or adjustment is favorable to the customer and is done as part of a settlement of a customer complaint; or

 

(ii) if a Forex Dealer Member's platform exclusively uses straight-through processing such that the Forex Dealer Member automatically (without human intervention and without exception) enters into the identical but opposite transaction with another counterparty (creating an offsetting position in its own name) and that counterparty cancels or adjusts the price at which the position was executed.

 

(2) With regard to cancellations or adjustments made pursuant to section (a)(1)(ii), a Forex Dealer Member must:

 

(i) provide written notification to the customer within fifteen (15) minutes of the customer order having been executed that it is seeking to cancel the executed order or adjust the customer's account to reflect the adjusted price provided by the Forex Dealer Member's counterparty, as applicable, and the written notification must include documentation of the cancellation or adjustment from the Forex Dealer Member's counterparty; and

 

(ii) either cancel or adjust all executed customer orders executed during the same time period and in the same currency pair or option regardless of whether they were buy or sell orders.

 

(3) Notwithstanding section (a)(2)(ii), a Forex Dealer Member may choose to honor transactions in which customer orders resulted in profits for the customers but must do so with regard to all similarly situated customers.

 

(4) Cancellations and adjustments to executed customer orders must be reviewed and approved by a listed principal that is also an NFA Associate. Such review and approval must be documented by a written record, must include any supporting documentation, and must be provided to NFA in the manner requested by NFA.

 

(5) A customer order is considered executed upon the earlier of the customer receiving notification of the execution price from the Forex Dealer Member or when the position established by such order is identified in the customer's account, whether electronically or otherwise.

 

(6) If a Forex Dealer Member may cancel or adjust an executed order under the circumstances provided for in section (a)(1)(ii), the FDM must provide customers with written notice that the Forex Dealer Member may cancel or adjust executed customer orders based upon liquidity provider price changes prior to the time they first engage in forex transactions with the Forex Dealer Member. The notice may be included in a customer agreement.

 

(7) Any provision in a customer agreement or any contract between a Forex Dealer Member and a customer that reserves to the Forex Dealer Member the right to make price or equity adjustments to a customer account except as allowed by this Rule is prohibited.

 

(b) Offsetting Transactions

 

Forex Dealer Members may not carry offsetting positions in a customer account but must offset them on a first-in, first-out basis. At the customer's request, an FDM may offset same-size transactions even if there are older transactions of a different size but must offset the transaction against the oldest transaction of that size.

[dirtydan]

Re: U.S. regulated Forex Dealer Members

 

U.S. regulated Forex Dealer Members required to execute trades on a first-in-first-out basis

(FIFO) as per Compliance Rule 2-43 (b).

 

Effective after July 31, 2009, the National Futures Association (NFA) will require all U.S. regulated Forex Dealer Members to execute trades on a first-in-first-out basis (FIFO) as per Compliance Rule 2-43 (b). FIFO requires that when multiple positions are held on the same currency pair, the position that was first opened will be the first to be closed.

 

As a result, forex traders will no longer have the ability to selectively place stop-loss or limit orders on individual trades, nor will traders be able to modify or close trades from the “Open Positions” window.

 

The NFA’s stance is that FIFO provides more transparency to customers, offering a more accurate picture of the P/L on multiple positions than viewing results of individual positions. This also brings the forex market more in line with the practices of the futures and equities markets.

*********

 

One more privilege for the cheaters.

 

Where did you get this info from this is the first I hear about this and if it is true it is bullshit and makes the forex market just as shitty as the stock market I opened an account with Dukascopy but I dont feel like putting all my money in there I also I have money with FXCM which is my main account and has the most money if this is true I will be forced to put my money in all uk broker f*** the U.S.A. brokerages home of the free my a** these rules are going to screw us. =D>

[fx1001]

Re: U.S. regulated Forex Dealer Members

 

Quoted from another forum:

 

"Here is an example:

 

you have the following position:

1) 2 lots

2) 2 lots

3) 7 lots

 

If you want put a conditional order on the 2nd 2 lot position, you will no longer be able to do so because your first positon is the same size as the one you are trying to close

 

now if your order goes like this

1) 2 lots

2) 7 lots

3) 2 lots

 

If you want to close 7 lots, you will be able to do so beacuse the previous position is a different size

 

That is the stupid rule that NFA came up with".

----------------------

Regards

[hip]

Re: U.S. regulated Forex Dealer Members

 

I amm closing all of my U.S brokers bc of this. A very bad descion from the NFA

[wilson]

Re: U.S. regulated Forex Dealer Members

 

will effect retail users

[mindsalike]

Re: U.S. regulated Forex Dealer Members

 

shame about this...had such good experience with fxdd

[noplan88]

Re: U.S. regulated Forex Dealer Members

 

Well now only fxdd can do hedging and no fifo rules, just continue your trading as usual of course i am not from fxdd lol

 

If you still trade with broker that NO Hedging and follow FIFO rules, you will doomed to reduce your account to zero, why? It is because your trades will never ends, just like a pyramid

 

For example when you open 1 mini lot or 0.10 buy, to close this trade you must click sell 1 mini lot or 0.10 sell. So at the end just let it run and run till your account gone, i guess this has got things to do with the governing body, why they wanted to do this if they did not corrupt? All these rules profitable to the broker only not us. If hedging is allowed then of course we will trade according to the margin requirements not NFA concern about our money.

 

Just do what they like, but close your account fourth week of july but in middle of the week don't wait till the end, just to secure yourself a positive profits and no drawdown.

 

After that find good broker for yourself and good luck.