NFA Increases Required Minimum Security Deposits for Forex Transactions
On March 20, National Futures Association (NFA) issued Notice to Members I-20-14, which announced the NFA Executive Committee’s decision to increase the minimum security deposits under NFA Financial Requirements Section 12 due to increased volatility in the currency markets and the margin increases that CME and ICE implemented for foreign currency futures involving the Norwegian Krone and Mexican Peso. Minimum security deposits required to be collected and maintained by forex dealer members have been increased to the following:
Norwegian Krone – 7 percent
Mexican Peso – 10 percent
The increases became effective for both new and existing positions at 5:00 p.m. CT on March 22, 2020, and will remain in effect until further notice.
More information is available here.