Quote:
Originally Posted by WhipSawFX
and the board decided that members must maintain at least 2x the net capital requirement to be able to get exempted from Section 12(a). Sounds pretty much that they are concerned about the multiple and they use it as a warning sign, companies must maintain 2x net capital requirement or else they can only offer leverage of 100x on majors, and 25x on exotics (as far as I understand it) .
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Good for the board. It is important these safe guards be in place. But guess what? This will only serve to further squeeze the little firms which goes to prove my point even more: that this new capital requirement rule makes it very hard for poorly capitalized firms to operate.