CFTC/NFA forum

On July 23, 2008, NFA released a statement to their
Forex Dealer Members (”FDMs”) advising that pursuant to CFTC
Reauthorization 2008, the adjusted net capital will be increased to $20
million. The current adjusted net capital requirement for FDMs is $5
million. The increase will be phased in through $5 million increments.
The first increase will take place October 31, 2008, which is an
extension of the original CFTC deadline of September 19, 2008. After
the first phase-in period, FDMs will be required to maintain at least
$10 million in adjusted net capital. The second increase will take
place on January 17, 2009, which will bring the requirement to $15
million. The last and final capital phase-in will be on May 16, 2009
setting forth a new requirement of $20 million

The notice also provides that NFA plans to modify the current
provisions of Section 12b. Currently, Section 12b states that FDMs who
offer greater than 100:1 leverage are required to maintain double the
current adjusted net capital. Instead, NFA has proposed to modify this
section to require these firms to maintain an additional $10 million or
150% of the adjusted net capital bringing the total capital to $30