Tag Archives: forex registration

Forex Managers and Managed Forex Funds

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Many forex managers use a product called a managed forex fund, which is the equivalent to a mutual fund hedge fund.  In a “managed forex fund,” the manager will invest the assets under the POA with the forex dealer member in the managed fund.  The a trader or traders for the forex dealer member will then manage the pool of assets.  Typically the forex dealer member will receive both a forex management fee as well as a performance allocation.  Many managers will then charge a management fee and a performance allocation (or only one or the other) to the underlying clients. Continue reading →

CPOs and CTAs have Until November 30 to update Disclosure Documents if they trade Forex

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As we announced earlier, the NFA promulgated rules which were approved by the CFTC which gave the NFA jurisdiction over retail off-exchange foreign exchange trading by its member firms.  What this essentially means is that if:

(i) you are currently a NFA member (e.g. you have a commodity/ futures pool or direct commodity/ futures accounts) and

(ii) you trade forex in the pool or account, or have an outside pool or account devoted to forex trading,

then you will need to update your disclosure documents with the NFA. The disclosure documents will need to contain all of the information required for non-forex disclosure documents and the update must be completed by November 30.  Please see NFA to Begin Regulating Forex. Continue reading →

Forex Hedge Funds – Forex Commodity Pools

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This is a guide for those managers who want to start a forex hedge fund.  It provides information on forex hedge fund structures, an overview of the registration requirements, and a discussion of the process of forming a forex hedge fund.  For the purpose of this article we are focusing on spot forex transactions, but much of this information also applies to those managers who trade foreign currency futures and forwards contracts. Continue reading →

NFA Releases More Information on Forex Registration

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(www.hedgefundlawblog.com in conjunction with www.forexregistration.com)

The NFA released more information on the Forex registration requirements for Forex CPOs, Forex CTAs and Forex IBs (release is here).  The NFA specifically notes that the CFTC has not yet completed writing the registration requirements so there is not date set for registration.

With regard to the registration process, individuals will need to submit a Form 7-R throught the NFA’s Online Registration System and will need to have passed both the Series 3 exam and the new Series 34 exam which will be one hour wand will consist exclusively of forex-related questions.  The NFA has also released some of the exam topics which can be found here and which we have also republished as Forex Exam Topics.  The registrations will also need to submit fingerprint cards to the NFA which will be processed by the FBI.  Continue reading →

What is Forex? Information on Retail Off Exchange Foreign Currency Transactions

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(www.hedgefundlawblog.com in conjunction with www.forexregistration.com)

Forex Overview

Forex or FX or retail off-exchange foreign currency transactions all refer to the same thing – trading foreign currencies for gain, usually in the spot market.  The Forex markets have grown tremendously over the last few years and both individual investors and money managers are trading foreign currencies to make money.  Unfortunately, many fraudsters have used the lure of the Forex markets to perpetuate scams and for some Forex has a negative connotation. Continue reading →

Forex Disclosure Documents Overview Part II

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(www.hedgefundlawblog.com)

Article by Bart Mallon (www.forexregistration.com)

Thursday’s installment of the Forex Disclosure Documents Overview focused on much of the routine disclosure items which a manager must provide in the disclosure document.  Today we focus mainly on the performance reporting side of the disclosure documents.

Performance Reporting

Overview

Basically the performance reporting aspect of the disclosure documents requires the manager to provide very detailed summaries of the performance of the offered program (either managed account or fund), the manager’s other trading programs, and potentially the performance of key employees.  Any other performance which is material will also need to be reported.  These performance disclosures will usually take up a few pages of the disclosure document and will face the greatest scrutiny by the NFA reviewers. Continue reading →