Tag Archives: forex advertising rules

NFA Interpretive Notices on Advertising Practices – Applicable to NFA Forex Members

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Earlier we discussed a release by the NFA in which they expressed the desire to apply the NFA Compliance Rule 2-29 to current NFA Members who are involved in the off-exchange forex markets (see NFA Proposes Rule 2-29 Apply to Forex Members).  We believe that the CFTC will approve the NFA’s request and thus certain aspects of Compliance Rule 2-29 will apply to NFA Members who trade forex.  We also believe that once the forex registration provisions are promulgated by the CFTC, this compliance rule will also apply to those forex managers.  In anticipation of such developments, we’ve summarized below (and linked to) the major interpretive notices that the NFA has released on Compliance Rule 2-29. Continue reading →

Discussion of NFA Compliance Rule 2-29 (Forex Advertising)

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NFA Compliance Rule 2-29 is important right now for those commodity pool operators and commodity trading advisors who also trade in the spot forex market.  If the CFTC approves a rule adjustment by the NFA (see NFA Announces New Forex Rules), such CPOs and CTAs (who are NFA members) will need to make sure that all of their activity with regard to their forex trading activities conforms to the requirements of NFA Compliance Rule 2-29.

NFA Compliance Rule 2-29 is also important because the CFTC is expected to propose rules requiring managers who trade in the Forex markets, and who are not regisitered as CPOs or CTAs, to register with the CFTC.  In the event such registration rules go forward, it is likely that such Forex managers will need to follow Compliance Rule 2-29.  This article details the important aspects of this rule.  Continue reading →