A new year brings with it a new forex industry. Let's hope that the new year will be a lot better than the last. Last year the NFA had its hands full as over a dozen firms went under dragging thousands of investors to the bottom of the sea. The NFA has stated that there are now only 24 registered forex dealer members. It appears the following four firms were recently removed from this exclusive club of 24:
1) Hamilton Williams (Velocity4X)
2) Royal Forex
3) Solid Gold
4) SNC Investments
Quote:
NFA reports four forex firms have ceased operations in light of increased capital requirements
January 11, Chicago - National Futures Association (NFA) announced today that four of its Forex Dealer Members (FDMs) have ceased operations as a result of NFA's new $5 million capital requirement, which became effective on December 21. In addition, six additional FDMs have ceased operating since September 1, 2007.
"When NFA's Board of Directors adopted the increased capital requirement on August 15, 2007, NFA had 34 registered FDMs," said Regina Thoele, vice-president of Compliance. "As of December 31, 2007, that number has decreased to 24."
The four firms that were unable to meet the new capital requirement and ceased operating transferred their customer accounts to other FDMs.
"We closely monitored each of the firms to ensure that customer funds were transferred to another, fully-capitalized firm," says Thoele.
|
But I wouldn't be surprised if the NFA took some further dramatic actions in the next few weeks as firms like Advanced Markets are still way below the capital requirement as of the last CFTC financial report:
Financial Data for FCMs
Developing...