Developing...
The National Futures Association has closed another Dead Forex Firm Walking. Only a few days ago you'll remember I spoke of going short Nations LLC at Intrade. I only wish there were such a contract because the firm has officially gone belly up and I could have made a killing. The NFA on its website today stated the firm has been shuttered:
http://www.nfa.futures.org/basicnet/...&contrib =NFA
The firm was a whopping $3.5 million under its capital requirement. One of the important points I probably have not stressed enough is that in addition to the minimum $5 million a firm is going to need to meet its initial cap requirement, firms also need to set aside 10% of their customers assets in addition to meeting various CFTC outstanding position requirements. That means most firms will probably need $10 million just to stay in business when the new cap requirement passes. Just think if dead forex firms walking aren't even meeting their capital requirements now how on Earth will they be able to meet them when they get raised dramatically in the future? It looks like the The Forward Forex Follies is going to be just the tip of the iceberg in the months to come...