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Questionnaire to NFA sent

Posted on October 18, 2007 at 14:31 in NFA new requirements by Francesc

Hi everybody,

I´ve just sent a few minutes ago an e-mail to Ms. Sharon Pendleton, compliance director for the NFA, with a small questionnaire we would like Mr. Dan Roth, CEO and President for the NFA, would gently answer.

I hope I´ll hear from NFA soon

I´ll keep you posted

Francesc

Hi Ms. Pendleton,

I would be very thankfull if you could pass along this questionns to Mr. Dan Roth, CEO and President for the NFA

If he could answer questions below, we will publish it along the feed-back we have received from CEO’s of the most important retail FX brokerage firms as FXCM, GFT, Gain Capital, Saxo Bank, InterbankFX….

Answers will be published at my blog

http://forex.typepad.com/fxstreet/

Thanks

Francesc

Questionnaire:

1. Which is the expected impact of the new NFA’s requirements in the FX business?
In September 26th you testified before a Congressional sub-committee regarding the reauthorization of the CFTC. Highlights of your testimony included a request for net capital to increase to $20 million and that all IB, Money Managers and any solicitors become registered with the NFA.
Do you think this additional measures would be enough to grant transparency and competition in the retail FX industry?

2. Will the NFA find positive if there are some corporate moves, such as M&A’s or acquisitions?
How does the NFA view the possibility of having fewer participants in the business?

3. Apart from a stronger vigilance on the accounting practices, will the NFA perform a stronger vigilance on trading practices?

4. Switzerland has recently started a similar process, is this process being coordinated with NFA?

5. For many, the very business model of Forex brokerage firms that needs to be decided is whether or not such brokerage houses can take opposite trading positions to those held by their customers, i.e., trading ‘against them’, which contradicts traders’ well-being. How NFA deals with this issue? Is there any regulation in this matter that customers should know?
Will the NFA regulate somehow if a FDM has the ability to act as a broker/dealer and clearer at the same time, which means in most cases taking opposite trades to their customers?

6. Customers believe the liquidity sources of a firm should be disclosed. What does the NFA say to that? Is there a way to have more transparency in pricing?

Francesc Riverola
CEO & Founder
FXstreet.com
FOREXSTREET S.L
Portaferrissa 7, 1er 2ona
Barcelona, 08002
Tel. +34 93 3040495
Fax +34 93 3040496

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