IBFX first to impose CFTC’s Hedging regulation

Less than 3 days since CFTC imposed its new regulation on disallowing hedging of positionsIBFX has been first(or one of the first i know) who have imposed this regulation onto their trading platforms. Though not with immediate effect, they have put word out of such upcoming changes and are advising of the steps/changes to take for their clients to accomodate these regulations. If one does need hedging, such a change will not be able to overcome these shortcomings. As we had mentioned before, only a change of broker who is non-US based or non-NFA regulated can help you circumvent this regulation.

Here is a statement from IBFX;

Dear Customers:

Interbank FX, along with all FCM’s, has received information from the NFA that we wanted to pass along to our customers. All registered FCM’s have received a new Compliance Rule 2-43 regarding forex trading. On May 15, 2009, forex customers will no longer be allowed open “hedged” positions in their accounts. Please see an excerpt from the new NFA rule below. If you are currently using Hedging as a trading strategy, we would encourage you to use the Interbank FX Demo accounts over the next month to help modify your trading strategy. Also, for those of you who utilize hedging strategy with your “Expert Advisors”, we would encourage you modify your code and test your advisor on the Interbank FX Demo servers as well. In order to assure a smooth transition for our customers to the new NFA Compliance Rule, Interbank FX has set May 8, 2009 as the last date that customers will be able to Hedge open positions.

Interbank FX is committed to providing our customers with superb tools, real time news and analytics to help you to be a successful trader. Please do not hesitate to contact one of our customer service professionals if you have any questions.

Best regards,

Todd B. Crosland
Chairman and President