Forex News | GFT Forex

The top facts you should know about NFA’s Rule 2-43 (b) (FIFO)

Fri, 03 Jul 2009 13:09:23 -0400

NFA's rules designed to help customers in the U.S. but some traders are confused at the new rules and what it all means

The NFA recently imposed a rule (2-43 (b)) that will eliminate the ability of some dealers to offer stop-loss and limit orders. As a market-maker for forex, GFT is already fully compliant with this rule and will not be affected — you will still be able to place stop and limit orders with us.

Some dealers have gone as far as asking their customers to transfer their account overseas as to avoid the new NFA rule. At GFT, our customers can keep their account stateside and have full access to stop and limit orders through all DealBook® platforms.

The new rule also eliminates "hedging," which is really misunderstood when it comes trading currencies. Read the reasons why here.

Finally, some forex dealers have recently experienced a decline in net capital. As world-leading company, GFT has $80 million in net capital, which greatly exceeds the NFA's minimum net capital requirement and is $20 million above the next largest U.S. forex dealer.

Read the facts from the NFA here.

Read the facts from GFT here.

Read other forex industry opinions here.

Economic Activity Slows in Britain and the Euro Zone

Fri, 03 Jul 2009 10:30:17 -0400

Pound and euro pull back briefly in forex trading

Economic activity has shown signs of slowing again in Britain and in the euro zone as "economic green shoots" continue to wither. GFT's Boris Schlossberg comments on the flagging economies on the other side of the Atlantic in FX360:

The stall in economic activity confirms our suspicion that the recovery trade is losing momentum as final demand remains lackluster. As we noted earlier the overall picture, “indicates stability, but little further improvement in both EZ and UK and does not augur well for risk currencies going forward.” The Aussie remains the one exception amongst the majors as Australia continues to benefit from Chinese demand.

On the news, the pound and the euro pulled back in forex trading slightly. The U.S. dollar is gaining some favor as a safe haven.

New NFA Rule Forces Some Dealers to Eliminate Stop and Limit Orders. GFT Not Affected

Thu, 02 Jul 2009 17:42:12 -0400

While a recently adopted National Futures Association (NFA) rule is forcing some forex brokers to discontinue the use of stop and limit orders to protect positions, GFTannounced today that their platform is fully compliant with all NFA regulations and, as such, customers trading with GFT will not be affected.

Click here for more information >>

New National Futures Association (NFA) Rule Will be Effective August 1, 2009

Thu, 02 Jul 2009 14:40:10 -0400

GFT traders not affected by rule

The NFA has enacted a new rule that will eliminate the ability of traders to hedge open trades. Many traders are nervous that they will no longer be able to place stop-loss or limit orders. As GFT has already been following this rule and will experience no changes. Customers with GFT will be able to continue to place stop-loss and limit orders.

There will be more information posted on FX360 shortly.

China Takes the Long View

Thu, 02 Jul 2009 08:51:28 -0400

Chinese quietly set about forex reserve diversification

Earlier this year, China made a rather strident call for a global reserve currency. This call was for the world to use International Monetary Fund "special drawing rights." Most countries scoffed at the notion, and, having planted the idea, China backed off. Even recently, China expressed its current support of the U.S. dollar as a reserve currency. But China isn't one to just give up. China is patient, and takes the long view.

Earlier this year, China arranged a currency swap with Argentina. Additionally, China is looking to have its major finance centers settle loans in yuan. There is even an agreement with Hong Kong in the works for exchanges in the yuan. Clearly, China is looking forward to a day (and it may be two or three decades in the future) when the U.S. dollar may not be the dominant reserve currency. The Forex Blog offers this on the gradual change:

Even China has stated that its reserve policy will not feature any sudden changes. In sum, “It seems safe to say that the Chinese are pursuing a rather logical path. They will continue to accumulate dollar reserves, as doing so fits their three-adjective criteria [liquidity, safety and returns], while also pushing for international acceptance of an alternative to the dollar in a new global currency.”

This is smart thinking. China has been taking one solid step at a time as it builds toward economic superpower status. The country has been diversifying in recent months, buying energy concerns and looking to European investments. While America's dominance has certainly lasted quite a while, China is looking toward the day when it make take her place.

Forex News | GFT Forex

The top facts you should know about NFA’s Rule 2-43 (b) (FIFO)

See Also

Economic Activity Slows in Britain and the Euro Zone

See Also

New NFA Rule Forces Some Dealers to Eliminate Stop and Limit Orders. GFT Not Affected

See Also

New National Futures Association (NFA) Rule Will be Effective August 1, 2009

China Takes the Long View

See Also