finra broker dealer

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Forex Introducing Broker

• Overview on Forex Introducing Brokers
• Together with the passage with the Farm Bill
  within the early a part of 2008 Congress
  essential the future registration of lots of of
  firms in the off-exchange foreign currency (spot
  forex) markets. Included within the group of
  firms and managers who might be required to be
  registered under the new forex regulatory regime
  are these firms which act as Forex Introducing
  Brokers.
• Background on Registration
• As mentioned above forex firms will should
  register soon. The Commodities Futures Trading
  Commission (CFTC) is charged with producing the
  forex registration rules and also the National
  Futures Association (NFA) is charged with
  overseeing compliance and implementing the new
  guidelines. Even though the CFTC has not but
  released proposed guidelines (there will probably
  be a comment period just before any guidelines
  are truly implemented), the NFA has already begun
  the approach of updating its systems and
  education employees to manage the new regulatory
  regime. Actually, the NFA has offered
  significantly with the public details on the what
  the rules may perhaps appear like when passed.
• Definition of a Forex Introducing Broker
• The definition of a forex introducing independent
  broker dealer (also called a forex IB) is
  comparable to a typical introducing broker,
  except that the forex introducing broker will
  introduce clientele (usually managers and other
  introducing brokers) to forex dealer members
  (also called FDMs) which are the firms which in
  fact execute the off-exchange forex trading.
  Note the term forex dealer member is offered to
  those firms that are registered with all the CFTC
  as futures commission merchants and who only
  engage in off-exchange foreign currency
  transactions. The Forex IB might be either an
  individual or a firm each person particular
  person of a firm will also deemed to become a
  Forex Associated Particular person (also known as
  a Forex AP). Both firms and people will should
  through the registration method with the CFTC by
  means of the NFA.
• The way to Register as a Forex IB
• As we noted above the registration guidelines
  have not however been finalized so we do
  currently know the exact method of registration.
  On the other hand, the NFA has indicated that the
  registration process for Forex IBs is going to be
  substantially similar to a regular introducing
  broker. In most situations the firm will need to
  file a Type 7-R (for the firm) as well as a Form
  8-R (for each owner and associate in the firm -
  ministerial type people is not going to ought to
  register). Each individual may also have to have
  passed many regulatory proficiency exams. The NFA
  has indicated that Forex APs will ought to have
  passed both the Series 3 exam also as a new exam
  called the Series 34 exam which will focus solely
  around the off-exchange foreign currency markets.
  Assuming that all of the above is in order, and
  all charges have already been paid, the forex
  registration course of action is probably to take
  anywhere from three to six weeks.
• Conclusion
• Introducing Brokers to FDMs will typically have
  to be registered as Forex Introducing Brokers
  right after the new forex registration guidelines
  go into effect. Firms and folks who solicit
  customers on behalf of FDMs ought to begin
  contemplating registration and ought to also get
  started speaking to a forex lawyer to go over the
  most effective strategy of proceeding. It is
  suggest that Forex IBs start this approach early
  as there will be a rush toward regulation once
  the rules go into effect.