Francesc Riverola,
Dan Roth the President and CEO of the NFA testified before a Congressional sub-committee yesterday regarding the reauthorization of the CFTC. Highlights of his testimony included his request for net capital to increase to $20 million and that all IB, Money Managers and any solicitors become registered with the NFA.
An interesting reading indeed!
Good night everyone
Francesc
While NFA registration sounds good on paper, it offers no rock solid guarantees although I do see how it can add to the appeal of a broker if they appear to be regulated in some way.
This new push to have ALL IB, MM etc registered with them as well appears to be a nice marketing push to grab some more membership fees. NFA is afterall a private club, not a government run regulatory body.
Another thing, with this push to increase capital requirements even more, would it be too unreasonable to assume this is a cheap stunt by the larger members to squeeze out their competition?
Hi Jafar
Well.. you know when things are out of control, natural reaction of body regulators - either private or public - is to rule everything, so for me to have now under regulation IB’s, MM.. is a natural reaction of the regulator to have things back under control.
To raise net capital to $20 is as well a natural reaction of the regulator. They are not sure that raising capital to $5 mio will be enough to keep bad guys away so why not to raise it to twenty and keep the yard for those we already know each other.
This way of acting here in my country is very common as the yard has always been and it will always be property of the same few.
Francesc