EFX's response is very troubling. First off, this rule in all likelihood is going through. So yes, the NFA and CFTC have to approve it. But it's going to become law. The NFA's reasoning is devastating. It's hard to argue with the logic behind it.
Second off, EFX has a steep road to climb in order to meet this new capital requirement. $5 million is just the tip of the iceberg and regardless of how EFX conducts their dealing desk (which is irrelevent) you need that money to stay in business. If EFX has the money, then put it up now. Why put your customers through the agony of not knowing whether or not you'll be around in six months? Instead, EFX is offering spin. Why? Because if they had the money they would have already put it up. Use your common sense and beware. Too many traders have gotten burned by small forex brokers. If traders still choose to take the risk, so be it. But you can't say you weren't warned.
