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 million.