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 NFA has issued the following news requiring an increase in required minimum security deposit for Forex transactions:
The regulator states, NFA Financial Requirements Section 12 requires FDMs to collect and maintain a minimum security deposit of 2% (of the notional value of transactions in 10 listed major foreign currencies (including the Swiss franc, Swedish krona and Norwegian krone) and 5% of the notional value of other transactions. Importantly, Section 12 also permits NFA’s Executive Committee to temporarily increase these requirements under extraordinary market conditions. Given the events of late last week involving the Swiss franc, the Executive Committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs under Section 12 as follows:
Swiss franc – 5% (20:1)
Swedish krona – 3% (33:1)
Norwegian krone – 3% (33:1)
These increases are effective as of 5 p.m. (CST) on January 22, 2015 and will remain in effect until further notice. FDMs should be aware that the Executive Committee may make additional increases in these currencies or other currencies as warranted by market conditions.
To view the official release, click here.