finra broker dealer

1. Forex Introducing Broker Overview on Forex Introducing Brokers Together with the passage of your Farm Bill in the early part of 2008 Congress expected the future registration of quite a few of firms inside the off-exchange foreign currency (spot forex) markets. Included within the group of firms and managers who might be expected to be registered beneath the new forex regulatory regime are those firms which act as Forex Introducing Brokers. Background on Registration As described above forex firms will really need to register quickly. The Commodities Futures Trading Commission (CFTC) is charged with making the forex registration rules plus the National Futures Association (NFA) is charged with overseeing compliance and implementing the new guidelines. When the CFTC has not yet released proposed rules (there might be a comment period prior to any rules are truly implemented), the NFA has currently begun the procedure of updating its systems and training employees to manage the new regulatory regime. In reality, the NFA has supplied much of the public data on the what the guidelines might appear like when passed. Definition of a Forex Introducing Broker The definition of a forex introducing finra broker dealer (also called a forex IB) is equivalent to a standard introducing broker, except that the forex introducing broker will introduce consumers (generally managers and other introducing brokers) to forex dealer members (also referred to as FDMs) which are the firms which actually execute the off-exchange forex trading. [Note: the term forex dealer member is offered to these firms that are registered with the CFTC as futures commission merchants and who only engage in off-exchange foreign currency transactions.] The Forex IB is usually either an individual or possibly a firm; each individual person of a firm will also deemed to be a Forex Linked Individual (also referred to as a Forex AP). Both firms and people will should via the registration procedure with the CFTC by means of the NFA. How to Register as a Forex IB As we noted above the registration rules have not however been finalized so we do currently know the exact process of registration. Having said that, the NFA has indicated that the registration procedure for Forex IBs is going to be substantially equivalent to a typical introducing broker. In most instances the firm will really need to file a Form 7-R (for the firm) as well as a Form 8-R (for every owner and associate in the firm - ministerial form individuals will not ought to register). Every particular person will also ought to have passed several regulatory proficiency exams. The NFA has indicated that Forex APs will must have passed both the Series three exam too as a brand new exam named the Series 34 exam which will concentrate solely on the off-exchange foreign currency markets. Assuming that all the above is in order, and all costs have been paid, the forex registration process is likely to take anywhere from three to 6 weeks. Conclusion Introducing Brokers to FDMs will normally must be registered as Forex Introducing Brokers just after the new forex registration guidelines go into effect. Firms and folks who solicit clients on behalf of FDMs really should begin considering registration and should also get started talking to a forex attorney to talk about the most beneficial system of proceeding. It's advise that Forex IBs commence this approach early as there are going to be a rush toward regulation once the rules go into impact.