Integral Development Corporation today announced compliance of FX Power Trader, Integral's white label retail margin trading solution, with the National Futures Organization's (NFA) Rule 2-43.
This announcement comes well ahead of the NFA's deadline for its first-in, first-out (FIFO) part of the rule effective July 31. With the addition of an option for non-hedged FIFO transaction to FX Power Trader, brokers can now choose the appropriate strategy that best fits their needs and that of their customers.
"Integral is very pleased to state that our clients are in compliance with NFA's rule 2-43 without compromising on functionality," said Harpal Sandhu, CEO, Integral Development Corporation. "We were able to make the necessary programming changes well ahead of stated NFA deadlines and thanks to our software-as-a-service delivery model, rolled it out very quickly."
Integral further announced that FX Power Trader now has the functionality to execute MetaQuotes Language 4 (MQL4). This allows for a seamless integration of user-generated Expert Advisors ("EAs") that were programmed in MQL4 into FX Power Trader.
Sandhu added, "We know from talking to our customers that the ability to import EAs is a key concern when switching trading systems. Our message to MT4 brokers is that if you are concerned about making the July 31 deadline, but felt stuck due to your large inventory of Expert Advisors, Integral has put the necessary changes in place to offer you an easy and immediate transition path."
Compliance Rule 2-43(a) will prohibit a Forex Dealer Member (FDM) from adjusting executed customer orders, with two exceptions. The first exception is where the adjustment is done to settle a customer complaint in favor of the customer. The second exception is where an FDM exclusively operates a "straight-through processing" model and the liquidity provider with which it entered into the automatic offsetting position changes the price of an executed order with the FDM.
New Compliance Rule 2-43(b) requires an FDM to offset positions in a customer account on a first-in, first-out basis, thereby prohibiting a trading practice commonly referred to as "hedging." A customer may, however, direct the FDM to offset same-size transactions even if there are older transactions of a different size. Rule 2-43(b) is effective for any positions established after May 15, 2009. Offsetting positions that were established prior to the effective date do not have to be liquidated, but once either position is closed out after May 15, it may not be reestablished as a hedge.