The Commodity Futures Trading Commission has approved amendments to the National Futures Association’s (NFA’s) Interpretive Notice entitled “Forex Transactions” (the Notice). NFA had proposed the amendments to the Notice in November 2007, which prescribe additional disclosure intended to make clear to the customers of Forex Dealer Members (FDMs) that an FDM acts as counterparty to its customers when they engage in retail forex transactions, and therefore may profit if the market moves against the customer. The Notice sets out the language of the required disclosure, which must be prominently displayed and separately acknowledged by the customer in accordance with the requirements set out in the Notice. The amendments to the Notice will become effective on June 1. FDMs will not be required to obtain an acknowledgment from persons who become their customers prior to that time, but must provide such customers with the disclosure in a manner designed to ensure its receipt by the customer.