Greetings,
I work for a broker dealer which provides clearing services for US equities and are looking at expanding into FOREX. Keep in mind, we do not have a proprietary trading desk or group nor have I ever been involved in the foreign exchange markets. I visited the NFA website to figure out what type of registration we would need, but I think I might need a better understanding of the FX markets in general.
1. First of all, I hear the terms FDM, RFED and FCM/RFD. Are they all the same thing? If not, what are the differences?
2. Since there is no central marketplace, exchange or clearing house, how are trades cleared and settled?
3. What type of registration would a firm need with the NFA if they wanted to provide clearing services for FOREX?
Any information provided would be greatly appreciated. Or if you could spare 10 minutes on the phone that would be awesome!
Thanks in advance.
I work for a broker dealer which provides clearing services for US equities and are looking at expanding into FOREX. Keep in mind, we do not have a proprietary trading desk or group nor have I ever been involved in the foreign exchange markets. I visited the NFA website to figure out what type of registration we would need, but I think I might need a better understanding of the FX markets in general.
1. First of all, I hear the terms FDM, RFED and FCM/RFD. Are they all the same thing? If not, what are the differences?
2. Since there is no central marketplace, exchange or clearing house, how are trades cleared and settled?
3. What type of registration would a firm need with the NFA if they wanted to provide clearing services for FOREX?
Any information provided would be greatly appreciated. Or if you could spare 10 minutes on the phone that would be awesome!
Thanks in advance.
