I have been hearing some news about rising capital requirement for Forex brokers. Here we go. Well, how many small brokers will be eliminated by then? Well, in the non regulated market, this move is considered as an improvement to the retail Forex trading though.
NFA (National Futures Association) has received notice that the Commodity Futures Trading Commission has approved changes to NFA Requirements Section 11 and the Interpretive Notice entitled “Forex Transactions.” The amendments increase the minimum net capital requirement for Forex Dealer Members (FDMs) to $5,000,000. They also eliminate the concentration charge and replace it with restrictions on the types of firms with which an FDM may maintain assets and cover its exposure for purposes of CFTC Regulation 1.17. These changes will become effective on December 21, 2007.
Full article from FXstreet.com here.