GBP Margin Requirements - US Brokers - Nov. 7

Jason Rogers · Nov 4, 2016

Attention All US Traders

This message is for US traders ONLY: NFA is temporarily increasing margin requirements on GBP pairs to 5% effective 5:00PM EST on Monday, November 7.

Jason Rogers · Nov 7, 2016

Jason Rogers said:
Attention All US Traders

This message is for US traders ONLY: NFA is temporarily increasing margin requirements on GBP pairs to 5% effective 5:00PM EST on Monday, November 7.

Hi Everyone,

To provide some additional background on my previous post, this ruling was issued last Friday by the NFA which regulates forex trading in the US. We were notified ourselves only that afternoon which is why I shared this information on the forum as soon as I could.

Below is the full text of the NFA notice:

Notice I-16-25
November 04, 2016

Immediate attention required – Financial Requirements Section 12 – Increase in required minimum security deposit for forex transactions

NFA Financial Requirements Section 12 requires FDMs to collect and maintain a minimum security deposit of 2% of the notional value of transactions in 10 listed major foreign currencies and 5% of the notional value of other transactions. Importantly, Section 12 also permits NFA's Executive Committee to increase these requirements under extraordinary market conditions. Given the recent events involving the U.K. exiting the European Union (Brexit) the Executive Committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs under Section 12 for currency pairs involving the British pound to a minimum of 5%. This increase is effective as of 5 p.m. (CST) on November 7, 2016 and remains in effect until further notice.

FDMs are also reminded that the Executive Committee raised the minimum security deposit required to be collected and maintained under Section 12 for currency pairs involving the Mexican peso to a minimum of 6% in January 2015. Given the recent volatility surrounding the Mexican peso, each FDM must ensure that it continues to adhere to this increased security deposit amount.

If you have any questions on these requirements, please contact Sarah Walsh, Associate Director, Compliance ([email protected] or 312-781-1202) or Shana Dunnigan, Manager, Compliance ([email protected] or 312-781-1379).

GBP Margin Requirements - US Brokers - Nov. 7

Jason Rogers

Senior member

Jason Rogers

Senior member

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