LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
The US Commodity Futures Trading Commission (CFTC) has just put the final touch to a new rule that is set to change the regulatory landscape for introducing brokers in the United States.
The CFTC today issued a final rule, known as new Commission regulation 170.17, which requires that all registered introducing brokers and commodity pool operators, and certain commodity trading advisors (CTAs) become and remain members of a registered futures association (RFA).
Effectively, this means that all IBs, CPOs and some CTAs should have registration with the National Futures Association (NFA), which is the single RFA in the United States currently.
The rule was initially proposed in November 2013, as a part of the swap rules of the Dodd-Frank act. The rule is seeking to tackle a loophole that demanded only from futures commission merchants (FCMs), swap dealers (SDs) and major swap participants (MSPs) to be registered with the NFA.
The changes are most likely to be associated with significant financial costs and red tape, which could push many smaller firms out of business.
To view the official press release by the CFTC, click here.