End Of Hedging?

[tavi_star]

CFTC + NFA: End Of Hedging?

 

NFA has received notice that the Commodity Futures Trading Commission has approved new NFA Compliance Rule 2-43 regarding forex orders. The prohibition on carrying offsetting transactions will be effective for any positions established after May 15, 2009. The requirements regarding price adjustments will become effective as to all customer orders executed after June 12, 2009.

 

Offsetting Transactions

 

New Compliance Rule 2-43(b) requires an FDM to offset positions in a customer account on a first-in, first-out basis, thereby prohibiting a trading practice commonly referred to as “hedging.” A customer may, however, direct the FDM to offset same-size transactions even if there are older transactions of a different size. Rule 2-43(b) is effective for any positions established after May 15, 2009. Offsetting positions that were established prior to the effective date do not have to be liquidated, but once either position is closed out after May 15, it may not be reestablished as a hedge.

 

You can read more about this news in these links:

 

http://www.nfa.futures.org/news/news...ArticleID=2273

 

http://www.nfa.futures.org/news/PDF/CFTC/C...eAdj_112408.pdf

 

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This only affect US traders and brokers.

Editat Aprilie 15, 2009 de tavi_star