Today is the dateline to implement the new NFA rule for no hedging. Judging by how three leading US brokers have reacted to and implemented the NFA Rule 2-43, the chaos created by NFA and loss of retail forex business for US will be felt for some time. Let’s see what they did and let’s see if you can identify them.
1. The obedient and filial broker – this broker is filial to NFA and follows everything to the core; not only have they implemented the rules, they have done it even earlier than the dateline. And what they have done is to reinforce that hedging is forbidden and many other strategies cannot be used. There are no other solutions and the only way forward if you still need to hedge is to leave this broker.
2. The rebellious but creative broker – this broker said they are planning innovative ways to circumvent the whole situation; unfortunately there is not enough time. The dateline to meet the obligations was 18 May 2009. And this creative broker managed convince NFA to wait and WILL NOT make any changes for now.
3. The insightful and entrepreneurial broker – this broker is entrepreneurial and had already expanded overseas. Their solution is the best and simplest – go do it outside USA where NFA has no jurisdiction! Their solution is the best because they get to keep all their customers.
So who are these brokers?!
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