The U.S. derivatives industry's frontline regulator increasedthe amount of money traders must put down to back currencytransactions after a surge in the Swiss franc left a leading brokerin need of a US$300 million rescue.
|The National Futures Association (NFA), an industry-fundedoverseer of the market, set more stringent requirements for tradingin the Swiss franc, Swedish krona, and Norwegian krone, the groupsaid in a statement released Wednesday. The changes apply to retailcurrency trading.
|Clients of FXCM Inc., the largest retail currency broker,suffered big losses last week after the Swiss National Banklet the franc float freely against the euro. The franc surgedas much as 41 percent. FXCM warned that client losses threatenedthe broker's compliance with capital rules.
|The NFA has said it is reviewing oversight of retail currencytrading to ensure rules governing leverage in the market adequatelyprotect customers. Sharon Bowen, a member of the Commodity FuturesTrading Commission, said Wednesday that her agency should reviewits oversight of the market and consider tighteningregulations.
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
