Sam

My direction for Euro/Dollar this week so far is still down. I think it can go as high as 1.3670 area or as high as 1.3700, then drop.  However it might not drop as much as the monthly direction is still up for Euro.

1.4600 to 1.4650 would be good entry to buy euro/dollar this week. 1.4600 is an excellent entry but 1.4650 is a little more aggressive entry.  Euro is going down now, but I do think it will retest 1.4800 area this week. No matter how much it is going down now, I do belive it will reverse and try higher levels this week. We are almost approaching month end, 1.4800 area is probably a big resistence area where Euro will not pass through this month, however short term direction is still up for Euro for now.

Ideal entry to buy Euro is 1.4500, although this can go as low as 1.4450.  Anywhere is good entry to buy from 1.4520 to 1.4450.

The testing application form (U10) can either be downloaded or completed online by visiting FINRA’s web site at www.finra.org. Normally, NFA will receive evidence directly from FINRA that individuals have passed the Series 3 or another examination. In unusual circumstances, NFA may request the individual to submit proof that he or she passed an examination.

Individuals may not be required to take an examination if:

• they have passed the examination that they intend to use to satisfy the proficiency requirements
  • within two years of the date the application is filed; or
  • more than two years prior to the date their application is filed and since that date there has not been a period of two consecutive years during which they were not registered as an AP or FB or were not an approved principal of a registrant; or
• they are currently registered as a Floor Broker. Alternatives
  Based on the individuals’ registration status and the type of business the individuals conduct, they may be eligible for one of the following alternatives to the Series 3 examination:
  Futures Managed Funds Examination
  (Series 31)
  Individuals may use the Series 31 if (1) they are registered with FINRA as a General Securities Representative with their sponsor and (2) they are going to limit their futures activities of behalf of their sponsor to soliciting funds, securities or property for participation in a commodity pool, soliciting discretionary accounts to be managed by CTAs or supervising persons who perform these same limited activities.

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  Limited Futures Examination - Regulations
  (Series 32)
  Individuals may use the Series 32 if, within the two years prior to filing the application, they have been registered or licensed to solicit customer business in futures in a jurisdiction outside of the United States (currently UK and Canada only). In order to be eligible for this alternative exam, applicants must submit proof of such registration or license to NFA

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  Referral of Securities’ Clients
  Individuals are not required to take an examination if (1) they are registered with FINRA as a General Securities Representative with their sponsor and (2) they are going to limit their futures activities on behalf of their sponsor to referring clients to APs of the sponsor, which referrals are solely incidental to their business as a General Securities Representative, or supervising persons who perform these same limited activities.

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  Waivers for CPOs and CTAs Trading Primarily in Securities
  Under NFA Registration Rule 402, NFA may waive the examination requirements for certain individuals who are associated with CPOs that are required to register solely because they operate commodity pools principally engaged in securities transactions and/or who are associated with CTAs that are required to register solely because their securities advisory services include advice on the use of futures and options for risk management purposes. The individual or firm requesting the waiver must provide a written description of the facts that qualify the individual for a waiver.

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Retail Off-Exchange Forex Examination (Series 34) Proposed amendments to NFA Bylaw 301 will require any individual seeking approval as a forex firm or forex individual to pass the Series 34 examination before engaging in off-exchange forex business with retail customers. The proposed amendments grandfather certain individuals who were approved sole proprietor principals or registered as associated persons or floor brokers on May 22, 2008, from the Series 34 proficiency requirement.

The proposed amendments provide that any individual applying for approval as a forex firm or forex individual shall not be granted approval as a forex firm or forex individual unless:

• the applicant has satisfied the Series 3 or Series 32 proficiency requirement (as described above) and
  • NFA has received satisfactory evidence that the applicant has passed the Series 34 within two years of the date the application is filed or
  • since the date the applicant last passed the Series 34 there has been no period of two consecutive years during which the applicant has not been either registered as an associated person or floor broker or an approved principal of a registrant; or
• the applicant was registered as an associated person, floor broker or an approved sole proprietor principal on May 22, 2008, and there has been no period of two consecutive years since that date during which the applicant has not been either registered as an associated person or floor broker or an approved principal of a registrant.

Branch Manager Examination - Futures (Series 30)

NFA must receive evidence that individuals applying to be a branch office manager have passed the Series 30. However, NFA will not require evidence that they have passed the Series 30 if, since the date they last ceased acting as a branch office manager, there has not been a period of two consecutive years during which they have not been registered as an AP. Additionally, individuals whose sponsor is a registered broker-dealer may, in lieu of the Series 30, provide proof that they are qualified to act as a branch office manager or designated supervisor under the rules of FINRA.

If you have questions, contact NFA’s Information Center at (800) 621-3570 or (312) 781-1410 or e-mail NFA. ]]> http://forex50.com/wordpress/?feed=rss2&p=418 http://forex50.com/wordpress/?p=409 http://forex50.com/wordpress/?p=409#comments Tue, 07 Apr 2009 02:14:04 +0000 Sam http://forex50.com/wordpress/?p=409 Just completed a three hour internal audit by PFG today.  Below is a list of required questions that were answered and prepared.   I think PFG is resonsible as far as preparing IBs for the upcoming NFA regulation. I am glad they are doing this, it is better for the market and clients.  Forex industry is not as regulated and a lot of people are suffering as a result, it is better if all the IBs are audited.  I think shortly I will apply for NFA registration and down the road I will apply for CTA registration. I think that’s the way to go as CTA registration is more regulated and it requires a firm to have disclosure documents, etc.,  basically performance will be verfied and it is more credible and better for investors.

I still need a few things prepared after this audit, although I tried my best to prepare for this meeting but I am still short a few items.  All and all, it was a good meeting and a good learning experience.  No regret a bit about going through this.

Sam

FX Offices - Audit items….

To expedite the on-site examination of your office, please have the following items and records ready for our review.  NOTE:  Any items listed below that you maintain electronically on your computer MUST be printed out for our review, Thank you.

1.    Agreement / Guarantee Agreement.  Agreements with the clearing agents.

2.     Articles of Incorporation, Certificate of Limited Partnership and Partnership Agreement or Articles of Organization and Operating Agreement, if applicable.  Also, Stock ledger, certificates, or other evidence of ownership in firm  Important for registered firms to ensure that all owners that are required to register are registered.

3.     Firm’s check ledger, and most recent six months of bank statements This is to confirm that you are in compliance with NFA By-law 1101.  This item is not important to you at this time, but we will discuss it further.

4.     Copy of firm’s privacy policy

5.    Written procedures for: business continuity / disaster recovery plan, Promotional material review, sales practice supervision  Required of all futures Introducing Brokers.  Good for you to have but not currently required.  Will discuss further and furnish you a template.

6.     Copy of firm’s anti-money laundering procedures or the signed sheet adopting the procedures of the FCM.  Reliance/Sharing of responsibilities letter.  Signed statements from each person agreeing to adhere to the AMLP, and signed evidence of annual AML training for each person.  Don’t be too concerned here.  Oddly enough FX has not been tested on this, but we will discuss the best way to approach this.

7.     Letter from FCM authorizing company to accept customer funds (1.57 letter)  A must have for registered IBs, but also quite important for FX firms.

8.     Copy of previous NFA, internal or other audit reports  Doesn’t currently apply.

9.     Signed attestation showing completion of the NFA Self-Examination Checklist.  Not at all required for FX.  I will show you where to get it so that if you like you can get ready to use it.

10.   Printed list from NFA’s website of all APs, Principals, and branch offices. Not currently applicable at all and not possible unless you are NFA registered.

11.   Written ethics training procedures and evidence that every AP has completed that training.  Not currently required, but we will give you a template for this too.  Good idea even if not registered to get this training.  We will discuss further.

12.   Most recent equity run (must be printed for review)  Many FX firms don’t even receive an equity run, as such, but we will discuss this further too.

13.   List of proprietary accounts for principals and APs  Accounts that are open in the name of any of your brokers or immediate family.  This is used by the NFA to check “front-running”.  This is not important at this time, but you should know about it for when you are registered.

14.   A minimum of 100 most recent order tickets, in chronological order.(if you place orders electronically, the printed daily order activity reports for the last two weeks)  The NFA requires that you maintain 5 years of your order activity.  This can be done electronically or in hard copy form.  More discussion here.

15.   A sampling of customer account forms - (They must be printed if you maintain them electronically)  Please have no less than 4 and up to 12, (for firms with more than 60 customers), of the newest customer account opening documents for review.  We review to ensure that all necessary customer information is furnished and that all forms are properly filled out.

16.   At least six months of copies of customer checks (with bank deposit slips if you deposit)  Not currently required by FX firms, but it is for futures firms and is a good idea to get into doing this as a common procedure.

17.   List of AP discretionary accounts  /  with the commission-to-equity ratio calculated  (Also have two monthly statements for each account with AP POA  -  NOT 3rd party POA)

18.   FCM and/or firm’s compliance / policy and procedures manual.  Not currently required for FX firms, but we can assist with this also.

19.   Customer complaint file (Empty or not, you MUST have a complaint file) Not currently required for FX firms, but good idea to have one.

20.   Advertising / Promotional material file (Empty or not, you MUST have an advertising file)  Currently required of futures and FX firms.  Important that any and all promo and advertising material be approved by a principal of the firm.

21.   Written procedures for any branch offices.  We will also need a copy of the most recent branch office audit you have conducted.  (If you have branches, it is a requirement that you have written branch office procedures and written proof that you have performed annual audits on those branches)  Not important right now but we will talk about this for current branches and for preparation of additional branches.

22.   Any sales training material and / or telephone scripts  Not required to have any phone scripts, but if you have them, we review them for compliance.

Sam