In response to recent events involving the Swiss franc, the NFA announced that its Executive Committee will increase the minimum security deposits required to be collected and maintained by forex dealer members (“FDMs”) under NFA Financial Requirements Section 12.
Section 12 requires FDMs to collect and maintain a minimum security deposit of two percent of the notional value of transactions in ten listed major foreign currencies, and five percent of the notional value of other transactions. Section 12 also permits NFA’s Executive Committee to temporarily increase these requirements under “extraordinary market conditions.” Therefore, the NFA is increasing the minimum security deposits required to be collected and maintained as follows:
- Swiss franc: 5 percent;
- Swedish krona: 3 percent; and
- Norwegian krone: 3 percent.
These increases are effective as of 5 p.m. Central Standard Time, on January 22, 2015 and will remain effective until further notice.
See: NFA Notice I-15-04.