Forex Dealer Members: Effective date for amendment to NFA Compliance Rule 2-43

NFA Compliance Rule 2-43 prohibits a forex dealer member (FDM) from cancelling or adjusting a customer account in a manner that would directly or indirectly change the price of the executed order except under two limited circumstances. The first exception permits a cancellation or adjustment if it is favorable to the customer and done as part of settling a customer complaint, provided the FDM adjusts all adversely affected customer orders. The second exception permits an FDM to adjust or cancel an order if the FDM exclusively uses straight-through processing and the counterparty to the offsetting position with the FDM cancels or adjusts that order. NFA recently amended NFA Compliance Rule 2-43 to specify that the second exception is limited to FDMs that exclusively use straight-through processing with a counterparty that is not an affiliate of the FDM.

This amendment was unanimously approved by the Board and will become effective on September 15, 2022.

More information regarding this amendment can be found in NFA’s June 7, 2022 submission letter to the CFTC.

If you have any questions about this amendment, please contact Katie Clapper (kclapper@nfa.futures.org or 312-781-1429) or Valerie O’Malley (vomalley@nfa.futures.org or 312-781-1290).

Source: National Futures Association