CFTC and NFA tackle fx fraud in the US

Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) announced several new rules last week to stamp out fraudulent fx operations in the US.

NFA addressed the problem in June 2002 when it created a separate membership category for CFTC-registered firms that offer off-exchange fx trading. NFA adopted new rules to hold futures commission merchants (FCMs) accountable in cases where they use unregulated firms to solicit retail customers for fx trading.

"That creates that possibility,...