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Screenshot of a breaking news alert e-mail from Q2 2017
In the beginning of November, the NFA has issued a directive to all licensed forex brokers in the country, indicating that they must cut leverage and raise margin requirements on all GBP currency pairs.
Now, the National Futures Association has made a similar move with some other foreign currency futures including the Japanese Yen.
Immediate attention required – Financial Requirement Section 12 – Changes in required minimum security deposits for forex transactions
Increase in required minimum security deposits
Given the recent volatility in the currency markets, and the margin increases that CME and ICE have implemented with respect to foreign currency futures involving the Mexican peso, Japanese yen, and New Zealand dollar, the Executive Committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs under NFA Financial Requirements Section 12 to the following:
Mexican peso – 8%
Japanese yen – 4%
New Zealand dollar – 3%
These increases become effective, for both new and existing positions, at 5 p.m. (CST) on December 5, 2016 and remain in effect until further notice.
Decrease in required minimum security deposits
Given the recent margin decreases that CME and ICE have implemented with respect to foreign currency futures involving the Swiss franc, the Executive Committee has also determined to reduce the minimum security deposit required for currency pairs involving the Swiss franc to 3% (from the current 5% requirement imposed in January 2015). The decrease becomes effective at 5 p.m. (CST) on December 5, 2016 and remains in effect until further notice.