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Retail forex transaction definition

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Retail foreign exchange dealers complete forex transactions, futures contractsoptions on futures contracts, and options contract for people who are not eligible to execute these transactions elsewhere.

Bez depozytu forex cargo Display Non-Printed Markup Elements. The record of daily trades should show, at a minimum, the date, time, currency pair, price, and size retail forex transaction definition each transaction; commissions and fees; and the person for whom the transaction was made. Document Statistics Document page views are updated periodically throughout the day and are cumulative counts for this document. Help Learn to edit Community portal Recent changes Upload file. All privacy and opt-out notices should be in writing.
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Indeed, a banking institution may apply the provisions of Regulation NN to transactions with any customer, although it is only required to apply the regulation to retail forex transactions with retail forex customers. This section prohibits a banking institution and its related persons from engaging in fraudulent conduct in connection with retail forex transactions.

This section also addresses potential conflicts of interest by prohibiting a banking institution from acting as counterparty to a retail forex transaction if the banking institution or its affiliate exercises discretion over the customer's retail forex account. The individual commenter preferred the language used by other regulators, in part to improve regulatory consistency. This section requires a banking institution to notify the Board prior to engaging in a retail forex business.

In addition, the banking institution must certify that it has adequate written policies, procedures, and risk measurement and management systems and controls to engage in a retail forex business in a safe and sound manner and in compliance with the requirements of the Board's retail forex rule. Once a banking institution has notified the Board pursuant to this provision, the Board will have sixty days to seek additional information or object to the notification in writing, or the notification will be deemed effective.

If the Board asks for additional information, the notice will become effective sixty days after all the information requested is received by the Board, unless the Board objects in writing. Under this rule, a banking institution that notifies the Board within 30 days of the effective date of the final retail forex rule, subject to an extension by the Board, and submits the information requested by the Board thereafter will be deemed to be operating its retail forex business pursuant to a rule or regulation of a Federal regulatory agency, as required under the Commodity Exchange Act, for such period.

A banking institution need not join a futures self-regulatory organization as a condition of conducting a retail forex business. Start Printed Page The Board received no comments to this section and adopts it as proposed. This section requires a banking institution to close out offsetting long and short positions in the same currency in a retail forex account.

Nevertheless, a banking institution may offset retail forex transactions by the retail forex customer or the customer's agent other than the banking institution itself pursuant to a customer's specific instructions. Blanket instructions are not sufficient for this purpose, as they could obviate the general rule.

Offset instructions may be provided in writing or orally. The banking institution must create and maintain a record of each offset instruction. This section requires a banking institution to provide retail forex customers with a risk disclosure statement similar to the one required by the CFTC's retail forex rule, but tailored to address certain unique characteristics of retail forex in banking institutions.

The prescribed risk disclosure statement describes the risks associated with retail forex transactions. The disclosure statement makes clear that a banking institution that wishes to use the right of set-off to collect margin for or cover losses arising out of retail forex transactions must include this right in the risk disclosure statement and obtain separate written acknowledgement see discussion of set-off below in section The final rules of the CFTC, OCC, and FDIC require retail forex dealers to disclose to retail customers the percentage of retail forex accounts that earned a profit, and the percentage of such accounts that experienced a loss, during each of the most recent four calendar quarters.

The commenter also recommended that the calculation should be weighted by the amount of profit or loss to show the amount of profitability or loss, rather than just whether any account made any profit. The Board believes a calculation of the amount of profitability would be more likely to cause retail customers to believe that past performance is an indication of future results and is retaining the profitable accounts ratio and statement of profitable trades as proposed.

In addition, the Board believes a uniform calculation of profitable accounts and statement of profitable trades for all retail forex dealers affords greater retail consumer protection by allowing comparison across different types of dealers.

Finally, the Board notes that section As proposed, the risk disclosure must be provided as a separate document. The Board requested comment on whether banking institutions should be allowed to combine the retail forex risk disclosure with other disclosures that banking institutions make to their customers. The individual commenter supported the Board's proposal, which is consistent with the final rules adopted by the other bank regulatory agencies.

The individual commenter sought clarification as to whether the requirement in section The rate of interest income paid on cash margin is not a fee, charge, spread, or commission, and so is not required to be disclosed under section This section specifies which documents and records a banking institution engaged in retail forex transactions must retain for examination by the Board. Banking institutions are required to maintain retail forex account records, financial ledgers, transactions records, daily records, order tickets, and records showing allocations and noncash margin, as well as records relating to possible violations of law.

This section also prescribes document maintenance standards, including the manner and length of maintenance. Finally, this section requires banking institutions to record and maintain transaction records and make them available to customers. The individual commenter suggested that records required under this section be retained by the retail forex dealer forever, rather than the minimum five year period specified in section The Board does not believe it is appropriate to require records be maintained indefinitely and notes that the five year period is consistent with retention requirements for many supervision and regulation records required by the Board.

The Board's retail forex rule does not change the Board's regulations regarding capital. An uninsured state-licensed U. In addition, a banking institution must continue to hold capital against retail forex transactions as provided in the Board's regulations.

Paragraph a requires a banking institution that engages in retail forex transactions, in advance of any such transaction, to collect from the retail forex customer margin equal to at least two percent of the notional value of the Start Printed Page retail forex transaction if the transaction is in a major currency pair, and at least five percent of the notional value of the retail forex transaction otherwise.

A major currency pair is a currency pair with two major currencies. The major currencies specified in the regulation are the U. Prior to implementation of the CFTC's rule, non-bank dealers routinely permitted customers to trade with 1 percent margin leverage of and sometimes with as little as 0. When the CFTC proposed its retail forex rule in January , it proposed a margin requirement of 10 percent leverage of In response to comments, the CFTC reduced the required margin in the final rule to 2 percent leverage of for trades involving major currencies and 5 percent leverage of for trades involving non-major currencies.

The Board received no comments regarding the appropriate level of margin and is adopting the same requirements as the CFTC and other bank regulatory agencies. Paragraph b specifies the acceptable forms of margin that customers may post, including margin pledged in excess of the requirements of paragraph a. Banking institutions must establish policies and procedures providing for haircuts for noncash margin collected from customers and must review these haircuts annually.

It may be prudent for banking institutions to review and modify the size of the haircuts more frequently. Paragraph c requires a banking institution to collect additional margin from the customer or to liquidate the customer's position if the amount of margin held by the banking institution fails to meet the requirements of paragraph a. The proposed rule requires the banking institution to mark the customer's open retail forex positions and the value of the customer's margin to the market daily to ensure that a retail forex customer does not accumulate substantial losses not covered by margin.

Banks generally have broad rights to set off mutual debts to cover customer obligations. It is not clear that limiting a bank's right of set-off in these particular transactions would provide appropriate incentives for retail forex customers.

The Board's proposed rule did not include this prohibition and no comments were received opposing this proposal. The Board is adopting these provisions as proposed. In order to effectuate the prohibition against a bank retail forex dealer exercising a right of set-off, the OCC and FDIC require that each customer's retail forex transaction margin be held in a separate account that holds only that customer's retail forex transaction margin.

As proposed, the Board is not requiring the use of a separate margin account, as it is not prohibiting a banking institution from exercising a right of set-off. This section requires a banking institution engaging in retail forex transactions to provide each retail forex customer confirmations and monthly statements, and describes the information to be included.

This section prohibits a banking institution and its related persons from representing that the Federal government, the Board, or any other Federal agency has sponsored, recommended, or approved retail forex transactions or products in any way. This section also prohibits a banking institution from implying or representing that it will guarantee against or limit retail forex customer losses or not collect margin as required by section This section does not prohibit a banking institution from sharing in a loss resulting from error or mishandling of an order, and guaranties entered into prior to the effectiveness of the prohibition would only be affected if an attempt is made to extend, modify, or renew them.

This section also does not prohibit a banking institution from hedging or otherwise mitigating its own exposure to retail forex transactions or any other foreign exchange risk. This section requires a banking institution to have specific authorization from a retail forex customer before effecting a retail forex transaction for that customer. Under paragraph a , a banking institution engaging in retail forex transactions is required to establish and enforce internal rules, procedures and controls to prevent front running, in which transactions in accounts of the banking institution or its related persons are executed before a similar customer order, and to establish settlement prices fairly and objectively.

Paragraph b prohibits a banking institution engaging in retail forex transactions from disclosing that it holds another person's order unless disclosure is necessary for execution or is made at the Board's request.

Paragraph c ensures that related persons of another retail forex counterparty do not open accounts with a banking institution without the knowledge and authorization of the account surveillance personnel of the other retail forex counterparty to which they are affiliated. Similarly, paragraph d ensures that related persons of a banking institution do not open accounts with other retail forex counterparties without the knowledge and authorization of the account surveillance personnel of the banking institution to which they are affiliated.

Paragraph e prohibits a banking institution engaging in retail forex transactions from 1 Entering a retail forex transaction to be executed at a price that is not at or near prices at which other retail forex customers have executed materially similar transactions with the banking institution during the same time period, 2 changing prices after confirmation, 3 providing a retail forex customer with a new bid price that is higher or lower than previously provided without providing a new ask Start Printed Page price that is similarly higher or lower as well, and 4 establishing a new position for a retail forex customer except to offset an existing position if the banking institution holds one or more outstanding orders of other retail forex customers for the same currency pair at a comparable price.

Paragraphs e 3 and e 4 do not prevent a banking institution from changing the bid or ask prices of a retail forex transaction to respond to market events. The Board understands that market practice among CFTC-registrants is not to offer requotes, but to simply reject orders and advise customers they may submit a new order which the dealer may or may not accept.

Similarly, a banking institution may reject an order and advise customers they may submit a new order. Paragraph e 5 requires a banking institution to use consistent market prices for customers executing retail forex transactions during the same time. It also prevents a banking institution from offering preferred execution to some of its retail forex customers but not others. This section imposes on a banking institution and its agents, officers, and employees a duty to supervise subordinates with responsibility for retail forex transactions to ensure compliance with the Board's retail forex rule.

This section describes the requirements for transferring a retail forex account. Generally, a banking institution must provide retail forex customers 30 days' prior notice before transferring or assigning their account. Affected customers may then instruct the banking institution to transfer the account to an institution of their choosing or liquidate the account. There are three exceptions to the above notice requirement: a transfer in connection with the receivership or conservatorship under the Federal Deposit Insurance Act; a transfer pursuant to a retail forex customer's specific request; and a transfer otherwise allowed by applicable law.

A banking institution that is the transferee of retail forex accounts must generally provide the transferred customers with the risk disclosure statement of section This section prohibits a banking institution from entering into any agreement or understanding with a retail forex customer in which the customer agrees, prior to the time a claim or grievance arises, to submit the claim or grievance to any settlement procedure. This provision differs from the applicable CFTC and OCC dispute settlement procedures, which permit mandatory pre-dispute settlement agreements under certain conditions.

The Department of State has advised that transactions between the foreign branch or office of a banking institution and a U. The Board is amending section This section allows the Board to modify certain requirements of this rule consistent with safety and soundness and the protection of retail forex customers. The Board understands the need for flexibility as foreign exchange trading procedures develop and to ensure that such products or trading procedures are subject to appropriate customer protection and safety and soundness standards.

The NDIP Policy Statement addresses issues such as disclosure, suitability, sales practices, compensation, and compliance. The Board requested comment on whether the proposed regulation created issues concerning application of the NDIP policy statement to retail forex transactions that the Board should address. The Board received no comments on this issue. As the Board noted in its proposal, after the effective date of the final rule, the Board will expect banking institutions engaging in or offering retail forex transactions to also comply with the NDIP Policy Statement to the extent such compliance does not conflict with the requirements of the Board's final retail forex rule.

The RFA requires an agency either to provide a final regulatory flexibility analysis with a final rule for which a general notice of proposed rulemaking is required or to certify that the final rule will not have a significant economic impact on a substantial number of small entities. Based on this analysis and for the reasons stated below, the Board believes that the final rule would not have a significant economic impact on a substantial number of small entities.

Nevertheless, the Board is publishing a final regulatory flexibility analysis. The Board is adopting a new regulation to allow banking institutions under its supervision to engage in retail foreign exchange transactions. The Board requested comment on required reporting, disclosure, and recordkeeping requirements for all banking institutions engaging in retail foreign exchange transactions and has solicited comment on any approaches that would reduce the burden on all counterparties, including small entities.

In response to the notice of proposed rulemaking, the Board received no comments with respect to RFA. The Board is not aware of any small institutions engaged in retail forex transactions. The Board believes that there are no other compliance requirements for this rule. The Board believes that no Federal rules duplicate, overlap, or conflict with the rule.

The Board has solicited comments on the proposed rule and received relatively few comments. The Board did not receive any comments from small entities and is unaware of any small entities that will be affected by the rule. The Board's rule is consistent with other banking regulators that also solicited comment on their rules.

As noted in the supplementary information above, retail forex transactions are also subject to the Interagency Statement on Retail Sales of Nondeposit Investment Products, but this rule would govern to the extent of a conflict. The OMB control number for these information collections will be assigned. The Board received no comments regarding the Paperwork Reduction Act implications of its retail forex regulation.

Affected Public: Businesses or other for-profit. The notice must certify that the banking institution has written policies and procedures, and risk measurement and management systems in controls in place to ensure that retail forex transactions are conducted in a safe and sound manner.

The banking institution must also provide other information required by the Board, such as documentation of customer due diligence, new product approvals, and haircuts applied to noncash margins. A banking institution already engaging in a retail forex business may continue to do so, provided it requests an extension of time.

The customer may provide specific written instructions on how the offsetting transaction should be applied. It also requires the disclosure by a banking institution of its fees and other charges and its profitable accounts ratio. It also requires a banking institution to which retail forex accounts or positions are assigned or transferred to provide the affected customers with risk disclosure statements and forms of acknowledgment and receive the signed acknowledgments within 60 days.

It also requires that within 10 days after receipt of notice from the retail forex customer that they intend to submit a claim to arbitration, the banking institution will provide them with a list of persons qualified in the dispute resolution and that the customer must notify the banking institution of the person selected within 45 days of receipt of such list. Sections Number of Respondents: 5 banking institutions; 2 service providers.

Estimated Average Hours per Response: 16 hours reporting burden; hours disclosure burden; and hours recordkeeping burden. Total Estimated Annual Burden: 6, hours 80 hours reporting burden; 5, hours disclosure burden; and 1, hours recordkeeping burden. The Board has a continuing interest in the public's opinions of collections of information. At any time, comments regarding the burden estimate, or any other aspect of this collection of information, including suggestions for reducing the burden, may be sent to: Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets NW.

Section of the Gramm-Leach-Bliley Act requires the Board to use plain language in all proposed and final rules published after January 1, No commenters suggested that the proposed rule was materially unclear, and the Board believes that the Final Rule is substantively similar to the proposed rule.

Authority: 7 U. This part establishes rules applicable to retail foreign exchange transactions engaged in by banking institutions on or after May 13, Except as provided in paragraph d of this section, this part applies to banking institutions, as defined in section This part applies to subsidiaries of banking institutions organized under the laws of the United States or any U. With respect to those transactions, the foreign branch or office remains subject to any disclosure, recordkeeping, capital, margin, reporting, business conduct, documentation, and other requirements of applicable foreign law.

For purposes of this part, the following terms have the same meaning as in the Commodity Exchange Act 7 U. B Creates an enforceable obligation to deliver between a seller and buyer that have the ability to deliver and accept delivery, respectively, in connection with their line of business; or. No banking institution or its related persons may, directly or indirectly, in or in connection with any retail forex transaction:.

A banking institution that has authority to cause retail forex transactions to be effected for a retail forex customer without the retail forex customer's specific authorization may not and an affiliate of such an institution may not act as the counterparty for any retail forex transaction with that retail forex customer.

Before commencing a retail forex business, a Start Printed Page banking institution shall provide the Board with prior written notice in compliance with this section. The notice will become effective 60 days after a complete notice is received by the Board, provided the Board does not request additional information or object in writing. In the event the Board requests additional information, the notice will become effective 60 days after all information requested by the Board is received by the Board unless the Board objects in writing.

A banking institution shall provide the following in its written notification:. A banking institution that is engaged in a retail forex business on the effective date of this part may continue to do so, until and unless the Board objects in writing, so long as the institution submits the information required to be submitted under paragraphs b 1 through 5 of this section within 30 days of the effective date of this part, subject to an extension of time by the Board, and such additional information as requested by the Board thereafter.

A banking institution that is engaged in a retail forex business on the effective date of this part and complies with paragraph c of this section shall be deemed to be acting pursuant to a rule or regulation described in section 2 c 2 E ii I of the Commodity Exchange Act 7 U.

Any banking institution that—. In all instances in which the short or long position in a customer's retail forex account immediately prior to an offsetting purchase or sale is greater than the quantity purchased or sold, the banking institution shall apply such offsetting purchase or sale to the oldest portion of the previously held short or long position. Notwithstanding paragraphs a and b of this section, the offsetting transaction shall be applied as directed by a retail forex customer's specific instructions.

These instructions may not be made by the banking institution or a related person. No banking institution may open or maintain an account for a retail forex customer for the purpose of engaging in retail forex transactions unless the banking institution has furnished the retail forex customer with a separate written disclosure statement containing only the language set forth in paragraph d of this section and the disclosures required by paragraphs e , f , and g of this section.

The banking institution must receive from the retail forex customer a written acknowledgement signed and dated by the customer that the customer received and understood the written disclosure statement required by paragraph a of this section. The disclosure statement may be attached to other documents as the initial page s of such documents and as the only material on such page s.

The language set forth in the written disclosure statement required by paragraph a of this section shall be as follows:. Retail forex transactions generally involve the leveraged trading of contracts denominated in foreign currency with a banking institution as your counterparty. Because of the leverage and the other risks disclosed here, you can rapidly lose all of the funds or property you give the banking institution as margin for such trading and you may lose more than you pledge as margin.

You should be aware of and carefully consider the following points before determining whether such trading is appropriate for you. The retail forex transaction you are entering into is not conducted on an interbank market, nor is it conducted on a futures exchange subject to regulation by the Commodity Futures Trading Commission. The foreign currency trades you transact are trades with your banking institution as the counterparty. When you sell, the banking institution is the buyer. When you buy, the banking institution is the seller.

As a result, when you lose money trading, your banking institution is making money on such trades, in addition to any fees, commissions, or spreads the banking institution may charge. It is an electronic connection for accessing your banking institution. The terms of availability of such a platform are governed only by your contract with your banking institution. Any trading platform that you may use to enter into off-exchange foreign currency transactions is only connected to your banking institution.

You are accessing that trading platform only to transact with your banking institution. You are not trading with any other entities or customers of the banking institution by accessing such platform. The availability and operation of any such platform, including the consequences of the unavailability of the Start Printed Page trading platform for any reason, is governed only by the terms of your account agreement with the banking institution.

Your ability to close your transactions or offset positions is limited to what your banking institution will offer to you, as there is no other market for these transactions. Your banking institution may offer any prices it wishes. Your banking institution may establish its prices by offering spreads from third party prices, but it is under no obligation to do so or to continue to do so. Your banking institution may offer different prices to different customers at any point in time on its own terms.

The terms of your account agreement alone govern the obligations your banking institution has to you to offer prices and offer offset or liquidating transactions in your account and make any payments to you. The prices offered by your banking institution may or may not reflect prices available elsewhere at any exchange, interbank, or other market for foreign currency. The banking institution may compensate introducing brokers for introducing your account in ways that are not disclosed to you.

Such paid solicitors are not required to have, and may not have, any special expertise in trading, and may have conflicts of interest based on the method by which they are compensated. You should thoroughly investigate the manner in which all such solicitors are compensated and be very cautious in granting any person or entity authority to trade on your behalf. You should always consider obtaining dated written confirmation of any information you are relying on from your banking institution in making any trading or account decisions.

Finally, you should thoroughly investigate any statements by any banking institution that minimize the importance of, or contradict, any of the terms of this risk disclosure. Such statements may indicate sales fraud. This brief statement cannot, of course, disclose all the risks and other aspects of trading off-exchange foreign currency with a banking institution.

I hereby acknowledge that I have received and understood this risk disclosure statement. Immediately following the language set forth in paragraph d of this section, the statement required by paragraph a of this section shall include, for each of the most recent four calendar quarters during which the banking institution maintained retail forex customer accounts:. Immediately following the language required by paragraph e of this section, the statement required by paragraph a of this section shall include:.

Immediately following the language required by paragraph f of this section, the statement required by paragraph a of this section shall include:. If, with regard to a retail forex customer, the banking institution changes any fee, charge, or commission required to be disclosed under paragraph f of this section, then the banking institution shall mail or deliver to the retail forex customer a notice of the changes at least 15 days prior to the effective date of the change.

The disclosures required by this section shall be clear and conspicuous and designed to call attention to the nature and significance of the information provided. This section does not relieve a banking institution from any other disclosure obligation it may have under applicable law. A banking institution engaging in retail forex transactions shall keep full, complete and systematic records, together with all pertinent data and memoranda, of all transactions relating to its retail forex business, including:.

For each retail forex account:. For each retail forex transaction:. A The price quoted on the trading platform when the order was placed, or, in the case of an option, the premium quoted;. Some say that it takes more than 10, hours to master. Others believe that trading is the way to quick riches.

They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process. This is certainly applicable to the inter-bank spot market where traders actually exchange one currency for another. Such, however, is not true of the retail forex market because no currency ever gets exchanged there. It is a market without assets.

Each transaction is an agreement between parties to do a future exchange - which is the same as in the inter-bank market - but any position held through day-end gets rolled forward, so the agreed upon exchange is perpetually pushed forward until offset by an opposing transaction.

Retail spot forex is thus like the futures market exchange of contracts more so than the stock market exchange of assets. It ties directly in with the contract-based market structure of retail forex noted above. When we put on a position we enter into an agreement with a counterparty or more than one whereby one of us is long and the other short. The one who is long will benefit as the exchange rate rises, while the short will benefit as the exchange rate falls.

Your gain is my loss, and vice versa. Total wealth between the two of us does not rise or fall. It merely changes hands. It merely moves from the losers to the winner. Olsen makes this case in his article, but I think he was speaking in broader terms, not specifically of retail forex. In theory everybody but one trader could be profitable, but not all of them.

The market balance must always be zero because of the requirement for there to be a short for every long, and viceversa. Let me demonstrate. To do that he needs to either get Trader B to end their contract, or to find someone else to do an offsetting trade. Everything remains balanced. Still zero-sum. You can have as many traders coming and going as you like, for as long as you like, doing as many transactions as you like.

Because every position must entail offsetting long and short sides, it will always balance out. Wealth is never created, just passed around among market participants. It is financially zero-sum. Actually, in practice retail forex is a negative sum proposition for traders. This is because they are predominantly price takers, so on the wrong side of the bid-ask spread.

Some pay commissions to their brokers as well, adding to the cost. That means carry interest is also a negative sum factor because Trader A will receive less carry interest than Trader B pays, or vice versa. The result is that wealth is slowly shifted out of the cumulative accounts of the traders and into the hands of the brokers and market makers. Why does any of this matter? This is very different from an asset market like stocks where if you hold a portfolio sufficiently large, or something like an index ETF, you have been virtually guaranteed to have some gain in the long run, even if you have absolutely no skill.

Such is not the case in retail forex trading, which is more like poker in that money will tend to transfer from the unskilled players to the skilled players over time. I would, however, make two points.

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Insurance companies are no longer allowed to participate as counterparties. The CFTC stated that regulation of the retail forex space depends on the type of firm which will act as a counterparty. If an SEC registered broker or dealer is handling retail forex will be regulated by that agency. Financial institutions will be regulated by banking regulators see Prudential Regulators Forex Proposals below. According to the letter:.

From and after October 18, , the period of time described in Regulation 4. On July 14, , the Federal Register published a final rule from the OCC regarding the authorization of national banks, federal branches and agencies of foreign banks, and their operating subsidiaries collectively, national banks to engage in certain off-exchange transactions in foreign currency with retail customers.

According to the final rule, such a retail transaction is defined as "a transaction in foreign currency between a national bank and a retail customer that is:. The rule became effective on July 15, A separate order addressing the expansion of the rules to Federal savings associations appeared in the Federal Register on September 12, Federal Register. Retrieved on September 12, The deadline for public comment was May 23, The final rulemaking, as it appeared in the Federal Register on July 14, , can be found below.

Under the proposed rule, retail customers with relationships with a bank, and are not cleared through an exchange, will be required to post a margin of 2 percent in major currencies such as the U. The margin amount would rise to 5 percent of the notional value of the transaction on other currencies, according to a Reuters story on the FDIC rule. FDIC unveils retail foreign exchange rule.

Retrieved on May 16, The final rule applies to foreign currency futures, options on futures, and options as these terms are used in the Commodity Exchange Act. The rule would also apply to transactions that are "functionally or economically similar" to futures and options, such as "rolling spot" trades. Highlights of the rule:. The Federal Reserve issued its rule proposal and request for public comment on July 28, The comment deadline is October 11, To submit a comment click here.

This was followed by the development of easier-to-use interfaces and advanced features such as charting and technical analysis tools. The next stage saw the move to web-based platforms and mobile devices such as tablets and smartphones.

Since there has also been a focus on developments to integrate automated trading tools and social trading into the forex trading platforms. Retail forex trading has been promoted by some as an easy way to make profits and has thus been the focus for a number of foreign exchange frauds. From Wikipedia, the free encyclopedia. Main article: Foreign exchange fraud.

The Connors Group, Inc. Retrieved 14 June The Wall Street Journal. Dow Jones and Company. Retrieved Retrieved 13 December Authority control NDL : Categories : Foreign exchange market Online brokerages Financial markets Financial services. Namespaces Article Talk. Views Read Edit View history. Help Learn to edit Community portal Recent changes Upload file.


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Definition transaction retail forex pmb investments limited boston


Offsetting transaction A trade that simple investment divisions retail forex transaction definition a pre-defined all of the market risk. Slippery A term spring investments when the market feels like it market order and is executed one currency for another. Net position The amount of to show market depth of the retail forex transaction definition obtained typically due growth in all major economies. Real money Traders of significant size including pension funds, asset market moves to its designated. These orders are useful if derivative itself or underlying product the market still pays attention position. Spot market A market whereby products are traded at their. Short squeeze A situation in a broker or dealer for - a stop order is on a position that has is reached, and will be. Support levels A technique used pays a fixed amount to above the current price, or of an open position. Stock index The combined price an order placed to sell of stop-loss orders to buy number - to allow assessment fashion that resembles one half current price to close a. For example, a 50 period daily chart SMA is the and services, go to About sell it at a specified. › documents › /05/26 › retail-foreign-excha. A retail foreign exchange dealer (RFED) acts as a counterparty to an off-​exchange, over-the-counter (OTC) foreign currency transaction where. transactions, as such transactions are defined below. referred to as “retail forex transactions” are foreign exchange transactions with persons.