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NFA Increase in required minimum security deposit for forex transactions 1/21/15
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,207
Notice to Members I-15-04
January 21, 2015
Immediate attention required – Financial Requirements Section 12 – Increase in required minimum security deposit for forex transactions
As you know, 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 (including the Swiss franc, Swedish krona and Norwegian krone) and 5% of the notional value of other transactions. Importantly, Section 12 also permits NFA's Executive Committee to temporarily increase these requirements under extraordinary market conditions. Given the events of late last week involving the Swiss franc, the Executive Committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs under Section 12 as follows:
Swiss franc – 5%
Swedish krona – 3%
Norwegian krone – 3%
These increases are effective as of 5 p.m. (CST) on January 22, 2015 and will remain in effect until further notice. FDMs should be aware that the Executive Committee may make additional increases in these currencies or other currencies as warranted by market conditions.
If you have any questions on these requirements, please contact Valerie O'Malley, Director, Compliance ([email protected] or 312-781-1290) or Rachel Brandenburg, Senior Manager, Compliance ([email protected] or 312-781-1472).
With the ECB Bank Rate Decision on Thursday (6:45AM CST), and the below circuit breaker announcement by the CME Group, currency margins for the Euro Currency & British Pound will be increased Wednesday Jan. 21, 2015 effective 5pm Central time and remain until Thursday Jan. 22, 2015 when market conditions will be re-evaluated.
Here is the temporary day trading margin requirements:
6E: $3’000 per contract
E7: $1’500 per contract
M6E: $300 per contract
6B: $1’500 per contract
M6B: $150 per contract
We will send out notice once the normal daytrade margins are back in effect.
In anticipation of increased market volatility, CME Group will be temporarily removing the 1st level of circuit breakers for certain Foreign Exchange futures products beginning with the opening at 17:00 CT on Wednesday, January 21, 2015 (for trade date, January 22), and continuing through the close at 16:00 CT for trade date Monday, January 26, 2015.
Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,207
Notice to Members I-15-07
January 23, 2015
Immediate attention required – Financial Requirements Section 12 – Additional increases in required minimum security deposit for forex transactions
As you know, on Jan. 21, 2015, NFA's Executive Committee exercised its authority under NFA Financial Requirements Section 12 and increased, until further notice, the minimum security deposits required to be collected and maintained by FDMs under Section 12 for transactions involving the Swiss franc (5%), Swedish krona (3%) and Norwegian krone (3%). At the time of those increases, NFA alerted FDMs that NFA was continuing to monitor market conditions and that the Executive Committee could decide to make additional increases to these or other currencies if market conditions warranted. Given the continued volatility in the foreign currency markets, the Executive Committee has determined to increase the minimum security deposits required to be collected and maintained by FDMs under Section 12 as follows:
Major Currencies:
Japanese yen – 3%
Australian dollar – 3%
Other Currencies:
Russian ruble – 20%
Brazilian real – 9%
Mexican peso – 6%
These increases become effective at 5 p.m. (EST) on Monday, Jan. 26, 2015 and will remain in effect until further notice.
If you have any questions on these requirements, please contact Valerie O'Malley, Director, Compliance ([email protected] or 312-781-1290) or Rachel Brandenburg, Senior Manager, Compliance ([email protected] or 312-781-1472).
