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.
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