FXDC Firms Comment on Guaranteed IB Proposal

FXCM, FX Solutions, Interbank FX, and OANDA Provide Feedback on CFTC Forex Proposal’s New Guaranteed Introducing Broker (IB) Rule

The new CFTC Forex Proposal contains a proposed requirement for all introducing brokers (IBs) to be guaranteed by one futures commission merchant (FCM).  Prior to the proposition of these rules, IBs were allowed to be either independent or guaranteed.  To be independent, an IB had to meet a minimum capital amount of ,000, among other financial requirements. To be guaranteed, an IB did not have to meet a minimum capital amount but instead had to sign a guarantee agreement with an FCM stating that the IB agrees to introduce all clients to that broker only.