Jan 20, 2017 | News

Amendment to NFA Compliance Rule 2-36: requirements for forex transactions

The CFTC recently approved NFA’s amendment to NFA Compliance Rule 2-36, which requires forex dealer members to provide customers, upon request, with certain transaction execution data.  This amendment will become effective on March 31, 2017.

The amendment provides customers with a framework for obtaining execution information to review the quality of the execution a customer received compared to that of other customers of the FDM.

  • Execution date and time (to the nearest millisecond EST)
  • Customer side (buy or sell)
  • Quantity
  • Currency Pair
  • Execution Price (including any mark-up)
  • Commission and other charges assessed by the FDM (if applicable);

FDMs must provide a customer with this data within 30 minutes of a customer’s request.

FDMs must inform customer’s of their ability to request this transaction in three different places:  the FDMs website, the customer’s trading portal, and each customer transaction statement.

Each FDM must also provide NFA with a copy of any customer requests and the FDMs response in the form and manner required by NFA.

To read more on the amendment, click here.