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On October 4, 2006, NFA issued a Member Responsibility Action ("MRA") against Spot FX Clearing Corp. whereby:
1. Spot FX is prohibited from soliciting or accepting any additional customer accounts or customer funds, except as security deposits for existing positions.
2. Spot FX is prohibited from accepting or placing trades for any customer accounts except for the rollover of currently existing customer positions and/or liquidation of existing customer positions. In taking any action to rollover or liquidate customer positions, Spot FX must act in the best interest of its customers.
3. Spot FX is required to liquidate all positions held in any account for any Spot FX principal or employee and, further, is prohibited from initiating any additional positions in such accounts.
4. Spot FX is prohibited from distributing, disbursing or transferring any funds, except to existing customers, without the prior approval of NFA.
5. Spot FX is required to provide notice to NFA of any distribution, disbursal or transfer of any funds to any customer on the same business day that any such distribution, disbursal or transfer occurs. Such notice shall include, at least, the date of the distribution, the name and address of the recipient, identification of any accounts from which funds are distributed and to which funds are distributed, and the amount of the distribution.
6. By 12:00 p.m. CDT on October 6, 2006, Spot FX is required to produce to NFA a financial statement including a net capital computation. The financial statement must properly reflect all assets and liabilities and the firm’s current capital position as well as a listing of all current assets and provide third party documentation supporting the existence and location of those assets.
The MRA will remain in effect until such time as Spot FX has demonstrated to the satisfaction of NFA that it is in complete compliance with all NFA Requirements. Spot FX is required to provide copies of this MRA, by overnight courier, to all of its customers and to all banks and other financial institutions with which it has money on deposit.
Having ploughed through 59 pages of this thread I've discovered two things...
1.For most people here Forex is the Wild West- there's little or no regulation except in the uS, and almost anybody with a couple of $M can set one up.
2. There appears to be no COMPREHENSIVE independent site or database which answers the questions of most of the traders here. And no Due Dilligence...Most brokerage firms employ and "introducers" scheme. So hell.. I dont know whether the recommendation/criticism I'm reading in this or any other forum is independent or written by the brokerage owners mother!!!
can I suggest that (unless someone knows of such a site/db)TSD initiate one. That a set questionaire which we can work out IN THIS FORUM over the next few months be sent to each of the 30+ brokers out there asking them to submit definitive information on the key concerns that exercise traders in choosing a brokerage (many of which have been raised in this forum) From ..Spreads - newstime policies - swap/swap arbitrage - location - staff - ownership - capital - capital guarantees - through to "What time zone does your server operate on" - etc etc...
Hey it's not going to stop a Refco or necessarily stop you from making a bad decision on Broker choice... but it might ... just might bring some clarity to the mixed messages that everyone seems to get from "customer support" (sic) inquiries.
And traders posts can be linked DIRECTLY to the brokers statement.
Most of all it might spare me and others from having to plough through 500 messages to still be confused.
Now maybe I'm suggesting reinventing the wheel and such a site already exists. If you know it ... POST IT.
But if not ... What do you guys think?
What do the TSD guys think?
In an ideal world such a DB site would be funded by an INDEPENDENT consortium of independent site operators. And supported by some hard and fast Due Dilligence rules for broker data submission.
Such a resource would become a pivot point (to use an FX term)for both new and experienced traders and provide a REAL resource for traders.
And if a broker chooses NOT to submit a statement - hell .. we could all draw our own conclusions....
....
My 0.0000000002$ worth
This is one of the best ideas I ever heard in the Forex world. I think this would be a very useful project that could further increase Forex-TSD's high prestige.
Anyway, there are some sites, such as forexbastards.com/broker_reviews.shtml and others that give place to customers opinion free but as far as I understand your idea, you imagine a structured database about the brokers with certain relevant data and information.
It would be great, and this is a very suitable forum with professional traders to make this dream true.
Quote:
Originally Posted by Oidunno
Having ploughed through 59 pages of this thread I've discovered two things...
1.For most people here Forex is the Wild West- there's little or no regulation except in the uS, and almost anybody with a couple of $M can set one up.
2. There appears to be no COMPREHENSIVE independent site or database which answers the questions of most of the traders here. And no Due Dilligence...Most brokerage firms employ and "introducers" scheme. So hell.. I dont know whether the recommendation/criticism I'm reading in this or any other forum is independent or written by the brokerage owners mother!!!
can I suggest that (unless someone knows of such a site/db)TSD initiate one. That a set questionaire which we can work out IN THIS FORUM over the next few months be sent to each of the 30+ brokers out there asking them to submit definitive information on the key concerns that exercise traders in choosing a brokerage (many of which have been raised in this forum) From ..Spreads - newstime policies - swap/swap arbitrage - location - staff - ownership - capital - capital guarantees - through to "What time zone does your server operate on" - etc etc...
Hey it's not going to stop a Refco or necessarily stop you from making a bad decision on Broker choice... but it might ... just might bring some clarity to the mixed messages that everyone seems to get from "customer support" (sic) inquiries.
And traders posts can be linked DIRECTLY to the brokers statement.
Most of all it might spare me and others from having to plough through 500 messages to still be confused.
Now maybe I'm suggesting reinventing the wheel and such a site already exists. If you know it ... POST IT.
But if not ... What do you guys think?
What do the TSD guys think?
In an ideal world such a DB site would be funded by an INDEPENDENT consortium of independent site operators. And supported by some hard and fast Due Dilligence rules for broker data submission.
Such a resource would become a pivot point (to use an FX term)for both new and experienced traders and provide a REAL resource for traders.
And if a broker chooses NOT to submit a statement - hell .. we could all draw our own conclusions....
....
My 0.0000000002$ worth