I don't know if anybody got this notice:
Notice to Members I-08-03
January 25, 2008
Effective Date of Amendments to the Interpretive Notice Regarding Forex Transactions
NFA has received notice that the Commodity Futures Trading Commission has approved amendments to the disclosure section of the Interpretive Notice entitled "Forex Transactions." The amendments will become effective on June 1, 2008.
The amendments require prescribed disclosure language that makes clear to customers that a Forex Dealer Member ("FDM") is acting as a counterparty in forex transactions and may profit from the market moving against the customer. The amendments require the disclosure to be prominently displayed in uppercase letters in at least 10 point size type and to be separately acknowledged by the customer. The amendments also give NFA staff the authority to approve alternative language in certain circumstances.
FDMs do not need to obtain an acknowledgment from existing customers or persons who become customers prior to June 1, 2008. FDMs must, however, provide the disclosure to those retail customers in a manner designed to ensure that they actually receive it. For example, merely including the disclosure on the firm's web site is not adequate, but sending customers an e-mail with the disclosure would be sufficient in most circumstances.
A copy of the relevant section with amendments marked is attached for your convenience. Additionally, NFA's November 29, 2007, submission letter to the CFTC contains a more detailed explanation of the changes. You can access an electronic copy of the submission letter at
National Futures Association | News Center.
Questions concerning these changes should be directed to Sharon Pendleton, Director, Compliance (spendleton@nfa.futures.org or 312-781-1401) or Michael A. Piracci, Senior Attorney (mpiracci@nfa.futures.org or 312-781-1419).