The Commodity Futures Trading Commission has approved the National Futures Association’s (NFA) Rules 2-41 and 2-42, requiring NFA members who manage customer OTC foreign currency (forex) accounts or offer pools trading forex to provide to prospective clients and pool participants a disclosure document, which must be filed with NFA prior to its first use and contain disclosures similar to those required under CFTC Part 4 regulations. In addition, a member operating a pool trading forex would be required to provide periodic (monthly or quarterly) account statements and an annual report to the pool participants. The new rules, which will become effective on November 30, will apply only if the forex pool or the customer for whom the forex account is being managed is not an “eligible contract participant” as set forth in Section 1a(12) of the Commodity Exchange Act.

http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2191