Quoted from:
National Futures Association | NFA Manual / Rules
Quote:
RULE 2-39. SOLICITING, INTRODUCING, OR MANAGING FOREX TRANSACTIONS OR ACCOUNTS.
(Click Here to Print this Rule) [Adopted effective September 15, 2005. Effective dates of amendments: February 13, 2007; June 5, 2007 and September 21, 2007.]
(a) Except for Members who meet the criteria in Bylaw 306(b) and Associates acting on their behalf, Members and Associates who solicit customers, introduce customers to a counterparty, or manage accounts on behalf of customers in connection with forex transactions shall comply with subsections (a), (b), (c), and (e) of Compliance Rule 2-36.
(b) No Member except a Forex Dealer Member or a Member who meets the criteria in Bylaw 306(b) may accept forex orders or accounts or receive compensation-directly or indirectly-for forex transactions from any person unless that person is a Member or Associate of NFA, meets the criteria in NFA Bylaw 306(b), or would be exempt from Commission registration if it were acting in the same capacity in connection with exchange-traded futures products.
(c) For purposes of this rule, the term "customer" means a person that is not an eligible contract participant as defined in Section 1a(12) of the Act and includes persons who participate in pooled accounts.
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It is clear enough that forex dealer member is allowed to accept business from unregistered IBs. What NFA is trying to do is forcing current FCMs to pay for FDM membership from $45,875 to $125,000 depending on firm's annual revenue. The FDM then will have to pay up to $50,000 depending on how many unregulated entities the firm has partnered with. Nice trick NFA! Nice trick!
Just a typical money-faced regulatory body writing new rules to make sure that they will earn more at the end of the year.