Forex Regulation in the U.S. & Canada
With world economies continuing their downward spiral since last fall, political leaders urge sweeping new regulations to restore trust and confidence in financial markets. The Obama administration seeks to revamp regulatory oversight by giving the Federal Reserve a broad mandate to oversee large financial companies, including banks and hedge funds, whose problems have clearly posed unacceptable systemic risks to the entire global economic order.
New proposals may require derivatives and exotic financial instruments to be traded on exchanges or through clearinghouses. Governments will likely respond to exuberant derivatives speculation by imposing more transparency and more regulation on markets and participants. There may also be tougher capital standards for large banks and increased oversight of executive pay at all financial institutions, Wall Street firms and possibly companies in other industries.
Deregulation that was accepted gospel for a generation is now scorned heresy. Driven by bailout fatigue and populist anger, markets are now put under a microscope as policy makers and regulators stand ready to rein in speculation and denounce greed. Fearing collateral damage, currency traders wonder whether the largely unregulated, transnational foreign exchange (forex) market can remain the last free bastion of unfettered capitalism, or if it will eventually fall victim to an overarching, supranational regulatory bureaucracy.
Despite the uneven regulation of the over-the-counter (OTC) forex market in many countries, many jurisdictions that regulate financial markets around the world have determined certain aspects of forex trading to be a registrable activity. Licensing and registration requirements are imposed on forex industry participants who are also required to adopt rigorous compliance policies and procedures to govern their business practices.
With retail forex gaining wider acceptance in the trading community, the trend towards more regulation will only intensify. Registered forex dealers and brokers welcome regulatory regimes that protect traders and investors, safeguard market integrity, promote free competition and ensure high standards of professional conduct.
The following is a bird’s eye view of regulatory authorities with direct and indirect oversight of retail forex dealers and brokers in the more widely recognized financial jurisdictions of the world:
| Jurisdiction | Regulatory Authority |
| U.S. | Commodity Futures Trading Commission (CFTC), National Futures Association (NFA), Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA)1 |
| Canada | Provincial Securities Commissions, e.g. British Columbia Securities Commission (BCSC), L'Autorité des Marchés Financiers (AMF), Ontario Securities Commission (OSC); Investment Industry Regulatory Organization of Canada (IIROC) |
| United Kingdom | Financial Services Authority (FSA) |
| Switzerland | Swiss Federal Banking Commission (SFBC) |
| Hong Kong | Securities and Futures Commission (SFC) |
| Japan | Financial Services Agency (FSA) |
| Australia | Australian Securities & Investments Commission (ASIC) |
Many forex traders in Canada open accounts with U.S. based dealers, primarily due to their proximity and the saturation of U.S. advertising in major Canadian markets. It is important to understand the different regulations on both sides of the border.
Forex Regulation in the U.S.
In the U.S., the CFTC Reauthorization Act of 20082 has amended the Commodity Exchange Act (CEA) to clarify and augment the CFTC’s authority over forex transactions with retail customers. Generally speaking, forex is defined by the NFA as leveraged off-exchange or OTC foreign currency futures and options and any other agreement, contract, or transaction in foreign currency where one party is a customer. A customer is any party to a forex trade who is not an eligible contract participant,3; or an individual with assets of less than $10 million or a small business.
The NFA’s definition of forex excludes securities and transactions that result in actual delivery within two days or that creates an enforceable obligation to deliver between parties who are capable of making and taking delivery for business purposes. Traditional spot foreign exchange transactions requiring two-day settlement for the physical exchange of deliverable currencies are thus not regulated by the NFA as forex.
Under the CEA, only certain regulated entities may act as counterparties to these off-exchange forex trades with retail customers. Futures Commission Merchants (FCMs) registered with the CFTC who earn more than 35% of their revenues from forex activities are regulated by the NFA as Forex Dealer Members (FDMs).4 Although FDMs execute the majority of forex trades for retail customers in the U.S., registered broker-dealers regulated by FINRA can also offer leveraged forex trading to customers.
Since late 2008, increases in the NFA’s minimum capital requirements for FDMs have been gradually phased in; to $10 million by 31 October 2008, $15 million by 17 January 2009, and $20 million by 16 May 2009.5 Furthermore, the NFA has proposed an amendment to the CFTC which will require FDMs to maintain an additional amount equal to 5% of customer liabilities in its adjusted net capital, when such liabilities are in excess of $10 million. This rule if passed would only apply to FDMs that operate dealing desks, and not to those who use straight-through-processing (STP) technology for customer trade execution. 6
With increasingly stringent financial requirements, the forex dealer community in the U.S. is undergoing consolidation that has seen a marked reduction in the number of FDMs. Anecdotally, some FDMs have eyed registration with the SEC as broker-dealers to carry on their forex business at lower capital requirements. However, in response FINRA has proposed capping customer leverage at 1.5:1 for forex trades to deter migration of under-capitalized FDMs to the broker-dealer environment. FINRA is also concerned that, in the retail forex market, there is neither any margin call nor any notice for an investor to deposit additional funds to maintain his or her position.7
Under NFA regulation, customer security deposits to open and maintain forex positions are simple and straight forward. FDMs must collect security deposits from forex customers equal to 1% of the notional value of transactions in specified G-7 currencies, Australian & New Zealand dollars, and Scandinavian currencies; and 4% of the notional value of all other transactions. Where the two currencies are in different categories, the FDM must collect the higher amount. If the transaction pairs a foreign currency with the U.S. dollar, the security deposit is based on the foreign currency.
Among recent compliance changes published in Notice I-09-10 by the NFA on 13 April 2009, hedging or the carrying of offsetting positions in customer accounts will be prohibited for new positions established after 15 May 2009 under new NFA Compliance Rule 2-43 regarding forex orders.8 Pending CFTC review, the NFA will also eliminate the exemption from collecting required security deposit; which currently allows FDMs who consistently maintain 150% of adjusted net capital to offer leverage higher than allowed under NFA Financial Requirements Section 12.9
Customer funds used to margin or guarantee exchange-traded futures and options contracts receive priority in bankruptcy proceedings. However, a forex customer receives limited protection against potential insolvency of his U.S. based dealer. In the case of an FDM, a customer trading off-exchange forex may not be given the same priority under the U.S. Bankruptcy Code. In the case of a broker-dealer, although the Securities Investor Protection Corporation (SIPC) will cover losses of cash and securities for up to $500,000 in a customer’s account, commodity futures contracts and currency are not eligible for SIPC protection.
Forex Regulation in Canada
Historically, the forex market in Canada had been regulated by the Bank of Canada. Until the end of the last decade, participants in this market were primarily big Schedule I and some Schedule II banks that speculated on the interbank market for their own accounts and serviced customer speculative and hedging accounts. These customers included hedge funds that traded forex as a separate asset class and used banks as prime brokers, liquidity providers or counterparties to their trades.
Other customers like pension funds and mutual funds used the forex market to hedge the currency exposure of international stock holdings. Some private client or wealth management divisions of Canadian banks also facilitated speculative trading for high net worth customers but this trading activity did not come under the purview of the securities regulators, who nevertheless designated financial institutions as “accredited investors” under National Instrument 45-106.10
Over the last ten years, the proliferation of online forex trading platforms and brokers that promised access to the global interbank market for retail investors caught the attention of Canadian regulators. What they found especially alarming was the highly leveraged aspect of forex trading in a highly volatile market that drew in many inexperienced and unsophisticated investors who were not necessarily apprised of the risks.
Both novice and experienced traders in retail forex could benefit from regulation, but attempts by securities regulators to impose jurisdiction over the entire foreign exchange market and all its players in Canada met with strong opposition from the banks, 11 who successfully rebuffed the regulators’ proposal and kept their foreign exchange trading activities out of the reach of the Provincial Securities Commissions.
Today, Canada has neither a national securities regulator, nor uniform regulation for OTC forex trading across the thirteen provincial and territorial jurisdictions. Indeed there is no agreement on the definition of forex. 12 However, ongoing harmonization efforts13 by the Canadian Securities Administrators (CSA) will hopefully bring uniformity to securities regulation including the treatment of retail forex trading. In general, brokers and investment dealers regulated by IIROC can trade leveraged or margined forex with retail customers in Canada.
In Ontario, although the OSC has not formally published its position on the registration requirement of forex dealers who trade with retail investors, proposed National Instrument 31-10314 and OSC administrative practices have filled in the legislative void to leave little doubt that, where leverage is involved, only an IIROC member can be exempted from the prohibition on registrants to offer credit or margin to customers.
In certain other provinces, there are instances where foreign or international dealers may be granted exemption from registration, provided, among meeting other criteria, they are registered and regulated in the jurisdictions in which they reside, which would allow them to carry on business with Canadian residents under certain restrictions, such as being able to trade only with qualified parties.
In British Columbia and Québec, registration for forex trading is required by the BCSC and AMF respectively under the provisions of the B.C. Securities Act and Québec Derivatives Act. Within these jurisdictions, IIROC is delegated the authority to regulate forex trading among its membership. In other provinces where forex trading has not been clearly categorized as a registrable activity, unregistered foreign dealers compete with registered dealers for retail customers.
In this environment, domestic dealers under IIROC regulation are out-maneuvered by unregistered foreign dealers. Their customers, while benefiting from lower margin requirement, may have difficulty enforcing their legal rights against any of the directors, officers, employees or agents because accounts are held offshore. Pending legislation or regulation will hopefully bring clarity to the situation, level the playing field and enhance investor protection.
Meanwhile, forex customers at IIROC regulated dealers enjoy one benefit that is unmatched in any jurisdiction around the world. Through strict adherence to proficiency requirements for registered individuals, solvency requirements for dealers, and financial records that include customer cumulative loss reporting, customer accounts held by IIROC member dealers are eligible for up to C$1 million coverage, per named account, from the Canadian Investor Protection Fund (CIPF), regardless of the residency or nationality of the customer.
British Columbia
Under the B.C. Securities Act, 15 British Columbia is the only jurisdiction in Canada that currently regulates forex trading as trading in securities.16
Prior to January, 2008, BCSC required forex dealers to register with the Commission as exchange contracts dealers under BCP 31-601. Since publishing the policy, forex trading among B.C. residents has proliferated, along with the number of foreign dealers soliciting in the province. With a greater understanding of the risks of leveraged trading facing forex dealers and their customers, regulation has also evolved.
Subsequently, BCP 31-601, as amended in January 2008, requires forex dealers to register as investment dealers – exchange contracts dealers and become members of IIROC. Forex dealers registered in jurisdictions outside of Canada are also required to register in British Columbia, unless granted exemptive relief, if they trade with British Columbia residents.
Many forex dealers are reluctant to register in British Columbia because of IIROC’s higher margin requirement. Under threat of sanction, many of these foreign dealers are equally reluctant to operate without registration in British Columbia in contravention to the B.C. Securities Act. However, some unregistered foreign dealers who are less stringently regulated in jurisdictions such as Cyprus, Belize, Anguilla, etc appear to be unaware of registration requirements and continue to solicit Canadian residents, including those in British Columbia.
Although BCSC has jurisdiction over forex contracts and IIROC has the mandate to regulate trading of this leveraged product, it is not clear the definition of “forex contract” in BCP 31-601 specifically refers to margined forex trading as currently offered to retail investors:
“A foreign exchange contract or ‘forex’ contract is a security that is a forward contract involving a leveraged agreement between two or more parties to exchange different currencies at a future time or times, other than a contract traded on an exchange recognized under sections 58 or 59 of the B.C. Securities Act” .17
Applying this definition to capture leveraged forex trading offered by online forex dealers raises serious issues. In practice, a forex contract is not traded as a forward contract because it has no forward maturity date. There is also no obligation to settle or exchange currencies at a future date, nor is there the option to do so. Instead of delivery of currency, the forex contract is rolled over18 indefinitely until closed, as long as there is sufficient customer margin to carry the position to the next day.
Québec
One of the primary goals of the Québec Derivatives Act, in force since 1 February 2009, is to regulate all forms of derivatives trading and advising with Québec residents.19 The Derivatives Act, separate from the Québec Securities Act, enhances regulatory certainty and the efficient operation of this market for industry participants in Québec.
Based on “core principles”, the new Derivatives Act governs derivatives trading and related activities, provides oversight of market professionals, monitors regulated entities, and ensures compliance with the Derivatives Regulation. It is the intent of the AMF to regulate forex under the Derivatives Act as OTC derivatives on currency (foreign currency trading contracts).
A “derivative” is broadly defined under the Derivatives Act.20
- “derivative” means an option, a swap, a futures contract or any other contract or instrument whose market price, value, or delivery or payment obligations are derived from, referenced to or based on an underlying interest, or any other contract or instrument designated by regulation or considered equivalent to a derivative on the basis of criteria determined by regulation;
- “standardized derivative” means a derivative that is traded on a published market, whose intrinsic characteristics are determined by that market and whose trade is cleared and settled by a clearing house; and
- “over-the-counter derivative” means any derivative other than a standardized derivative.
IIROC regulated dealers registered with the AMF who trade OTC derivatives products, including foreign exchange derivatives (spot, forwards, futures, swaps, options, etc) with retail investors who are Québec residents must apply for an exemption from the qualifying requirement set forth in Section 82 of the Derivatives Act, relating to the creation or marketing of certain OTC derivatives on currency (foreign currency trading contracts) offered to the public as defined in the Derivatives Act.
Section 82 the Derivatives Act states, “A person, other than a recognized regulated entity, who creates or markets a derivative, must be qualified by the Authority, as prescribed by regulation, before the derivative is offered to the public.”
An exemption can be granted pursuant to Section 86 of the Derivatives Act where, “The Authority may, on its own initiative or on application by an interested person, exempt a derivative, a person, a group of persons, an offer or a trade from any or all of the requirements or obligations under this Act if it considers that the exemption is not prejudicial to the public interest.”
A blanket decision issued by the AMF also preserves the ability of dealers to trade in both OTC and exchange-traded derivatives previously governed by the Québec Securities Act on a registration-exempt basis with Québec residents who qualify as “accredited investors”. 21
Ontario
The OSC has not published a formal position on the issue of registration for entities who offer forex trading to retail customers residing in Ontario. Against this backdrop, some market participants, many of them foreign dealers, have operated on the assumption that forex trading is unregulated in the province, and their views have been bolstered by the perceived lack of enforcement action in recent years. However, past judicial and administrative decisions support the interpretation of existing regulation to include forex trading as securities trading in Ontario, although not without equivocation.
To help gain some insight into the debate on whether forex trading is a security and therefore a registrable activity in Ontario, one can look to the Ontario Securities Act22 and its General Regulation, as well as the Commodity Futures Act23 and its General Regulation, to determine whether forex trading can be captured under any of the definitions and applicable provisions.
Anyone dealing in securities in Ontario, including commodities and futures contracts, is required to be registered with the OSC in the appropriate category. The term "security" is defined in Section 1(1) of the Ontario Securities Act. The terms "commodity" and "commodity futures contract" are defined in Section 1(1) of the Commodity Futures Act.
The Ontario Commodity Futures Act defines “commodity” to include, among other things, a currency; and a “commodity futures contract” to mean a contract which makes or takes delivery of a specified quantity and quality, grade or size of a commodity during a designated future month at a price agreed upon when the contract is entered into on a commodity futures exchange pursuant to standardized terms and conditions set forth in such exchange’s by-laws, rules or regulations.
Under the Ontario Securities Act, one of the subdivisions of the “security” definition also includes “any commodity futures contract or any commodity futures option that is not traded on a commodity futures exchange registered with or recognized by the Commission under the Commodity Futures Act or the form of which is not accepted by the Director under that Act.”
The above definition of “security” may appear to capture some aspects of forex trading, except that online forex trading does not entail physical delivery or exchange of currencies at a future date. Consequently, some OSC staff have taken the view that certain activities relating to forex trading which may require registration with the OSC may instead be captured by the “investment contract” subdivision of the “security” definition, or, because such activities have the inherent characteristics of instruments intended to be regulated for the purposes of Ontario securities law.
Additionally, one could review the Supreme Court of Canada decision in Pacific Coast Coin Exchange v. Ontario Securities Commission24 [1978] 2 S.C.R.112 and the various judicial and administrative decisions that have been issued subsequent to that case.
In the matter of Koman Info-Link Inc., Koman Investment Inc. aka Koman investment Inc.(B.V.I.), Simon Ko and Jose Castaneda, 25 OSC staff made its rulings based on its interpretation of securities regulation and alleged that the respondents operated a foreign currency (forex) trading operation which violated the Ontario Securities Act by, among other things, the following conduct contrary to the public interest:
1. distribution of securities without prospectus or prospectus exemption,
2. trading in securities without registration or an exemption from registration,
3. trading in securities as a dealer without registration or an exemption from registration,
4. acting as portfolio manager and/or as an advisor on behalf of certain investors without registration or an exemption from registration.
Subsequent settlement agreements between the Commission and respondents substantiated the above allegations.
In an OSC News Release dated 15 April 2004, the Commission warned the public about the risks of currency trading, or forex trading. 26 It further advised that, “Any person or company selling securities or offering investment advice in Ontario must be registered with the Ontario Securities Commission, unless an exemption is available. This also applies to people involved in any act, advertisement, solicitation, conduct, or negotiation in furtherance of a trade.”
If forex contracts are securities, then the forex dealer, as the issuer of such contracts, will be required to comply with the registration and prospectus requirements of Ontario securities law. Investors in such securities may be able to seek civil remedies against dealers who fail to comply with securities law, including a right of rescission for a forex transaction and/or damages for losses, on the grounds that such transactions were conducted in breach of securities law.
The prospect of the right of rescission for a forex transaction brings serious jeopardy to the business model of forex dealers who should seek prospectus exemption, and provide a detailed risk disclosure document in its place.
Traders and investors have long sought clarity pertaining to forex regulation in Ontario. To that end, IIROC “has taken the regulatory position that forex contracts are ‘securities’ for purposes of Canadian securities regulation and thereby a permissible activity if conducted by an IIROC member firm.”27 Salespeople at IIROC members must also be futures proficient to meet registration requirement.
One disadvantage in trading with an IIROC member firm may be the higher margin requirement28 imposed on a customer’s open positions as compared to industry benchmarks. However, strict proficiency and solvency standards ensure a greater degree of protection for customers who can seek legal and regulatory remedies in the event of trade dispute or dealer insolvency.
Summary
There are no laws or regulations in Canada that prohibit Canadian residents from trading online forex with any broker or dealer, domestic or foreign, provided that it is not involved in money laundering or terrorist financing. Canadian government agencies that monitor suspicious organizations and their activities include the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Office of the Superintendent of Financial Institutions Canada (OSFI).
Inside every regulatory jurisdiction in Canada, the onus is on the dealer to comply with all registration requirements. Trading with unregistered firms brings additional risks. Outside of ensuring that the dealer is not engaged in money laundering, terrorist financing or other criminal activities, traders should also verify the forex dealer’s registration and regulatory status with its reporting jurisdiction, and monitor any sanctions or enforcement action that may have been imposed.
Important Notice & Disclaimer
Information conveyed in this article is provided for general interest and information purposes only and does not constitute legal or financial advice. Although best efforts have been made to research the matters herein based on information we believe to be correct, they are not guaranteed to be complete and up-to-date and should not be relied upon for any commercial or financial transaction or similar use. This information is not intended to substitute for obtaining independent professional advice and users of this information are recommended to seek advice from suitably qualified professionals in areas of law, accounting, investment, taxation or any other area relevant to their particular circumstances.
Links
Commodity Futures Trading Commission
National Futures Association
Financial Industry Regulatory Authority
Securities and Exchange Commission
Security Investor Protection Corporation
Canadian Securities Administrators
– http://www.securities-administrators.ca
British Columbia Securities Commission
Ontario Securities Commission
Investment Industry Regulatory Organization of Canada
Canadian Investor Protection Fund
Financial Transactions and Reports Analysis Centre of Canada
Office of the Superintendent of Financial Institutions Canada
Financial Services Authority
Financial Services Compensation Scheme
Swiss Federal Banking Commission
– http://www.finma.ch/e/Pages/default.aspx
Securities and Futures Commission
– http://www.sfc.hk/sfc/html/EN
Financial Services Agency
– http://www.fsa.go.jp/en/index.html
Australian Securities & Investments Commission
– http://www.asic.gov.au/asic/asic.nsf
Footnotes
1 FINRA was created in July 2007 through the consolidation of NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange.
2 CFTC Reauthorization Act of 2008 Enacted Into Law: http://www.dechert.com/library/FS-14_8-08_CFTC_Reauthorization_Act_of_2008.pdf
3 The definition of an Eligible Contract Participant can be found on: http://www.cftc.gov/educationcenter/glossary/glossary_e.html
4 CFTC Approves NFA Rules on Retail Foreign Currency Trading:
http://www.cftc.gov/opa/press02/opa4662-02.htm
5 NFA Notice I-08-20 - Proposed Changes to Net Capital Requirements for Forex Dealer Members:
http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2165
6 NFA: Alternative Net Capital Requirement for Forex Dealer Members - Proposed Amendments to NFA Financial Requirements Section 11 and Interpretive Notice Regarding Forex Transactions:
http://www.nfa.futures.org/news/PDF/CFTC/FRSec11_IntNotc021909.pdf
7 FINRA Regulatory Notice 09-06: http://www.finra.org/Industry/Regulation/Notices/2009/P117744
8 NFA Notice I-09-10 - Offsetting Transactions: http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2273
9 NFA proposes to eliminate Forex Dealer Members' exemption from collecting required security deposit: http://www.nfa.futures.org/news/PDF/CFTC/FRSec12_intNotc021909.pdf
10 National Instrument 45-106: http://www.albertasecurities.com/securitieslaw/Regulatory%20Instruments/
4/11832/_1661974%20v10%20-%2045-106%20INSTRUMENT%20-%20%20PUBLISHED.pdf
11 Notice for OSC Rule 91-504: http://osc.gov.on.ca/Regulation/Rulemaking/Current/Part9/rule_20001201_91-504_notice.jsp
12 “Investments at a Glance” is published by the Canadian Securities Administrators and can be found on the websites of many provincial securities commissions: http://www.osc.gov.on.ca/Investor/Resources/res_invest-glance_en.pdf
The forex market is parenthesized as a commodities market on page 17. Retail forex is regulated as securities trading by the BCSC, and over-the-counter derivatives trading by the AMF.
13 CSA harmonization targets continuous disclosure requirements, prospectus requirements, prospectus and registration exemption requirements, and securities acts: http://www.albertasecurities.com/news/Documents/September%2027%202007.pdf
14 National Instrument 31-103, Sections 5.7 and 3.3 (1): http://www.osc.gov.on.ca/Regulation/Rulemaking/Current/Part3/rule_20080424_31-103_proposed-regreq.pdf
15 B.C. Securities Act, Regulations and Rules: http://www.bcsc.bc.ca/actregs.asp
16 Based on a decision In the matter of Yuen Chow International Group, et al:
http://cto-iov.csa-acvm.ca/ArticleFile.asp?Instance=101&ID=27D7B922A0374F58BC607CB7A93A4C8B
17 BCN 2008/05 Amendment of BC Policy 31-601 Registration Requirements (BCP 31-601) [BCN] Published on 22 January 2008:
http://www.bcsc.bc.ca/policy.aspx?id=6078
18 A forex contract shares similar characteristics with the now defunct Rolling Spot currency futures contract introduced in 1993 by the CME as an alternative to trading spot foreign exchange.
19 Regulation of derivatives markets in Québec:
http://www.lautorite.qc.ca/projets-speciaux/encadrement-derive.en.html
20 Québec Derivatives Act:
http://www.lautorite.qc.ca/userfiles/File/projets-speciaux/produits-derives/LID_sanctionnee_A.pdf
21 Canada: Québec Derivatives Act In Force As Of 1 February 2009 – Key Considerations For Industry Participants, published 10 February 2009 by François Brais and Julie Hesse:
http://www.mondaq.com/article.asp?articleid=73690
22 Securities Act (Ontario): http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90s05_e.htm
General Regulation: http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_901015_e.htm
23 Commodity Futures Act: http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90c20_e.htm
General Regulation: http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_900090_e.htm
24 Pacific Coast Coin Exchange v. Ontario Securities Commission, [1978] 2 S.C.R. 112:
http://csc.lexum.umontreal.ca/en/1977/1978rcs2-112/1978rcs2-112.html
Please see the decisions and reasons In the Matter of Universal Settlements International Inc. dated 29 September 2006: http://www.osc.gov.on.ca/Enforcement/Proceedings/RAD/rad_20060929_
25 Settlement Agreement with the OSC In the matter of Koman Info-link Inc. et al: http://www.osc.gov.on.ca/Enforcement/Proceedings/SET/set_20000601_komaninf olinketal.jsp
Settlement Agreement with the OSC In the matter of José Castaneda et al:
http://www.osc.gov.on.ca/Enforcement/Proceedings/SET/set_20000531_castane dajose.jsp
26 OSC News Release dated 15 April 2004 -If you’re playing the FOREX market, make sure you can handle the risk: http://www.osc.gov.on.ca/Media/NewsReleases/2004/nr_20040415_osc-ia-forex.jsp
27 “Regulatory Analysis of Contracts for Differences (CFDs)” published by the Investment Dealers of Canada, 6 June 2007, page 14, footnote 10:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=CF983987B0A449C881DFC F5EDC640E99&Language=en
28 IIROC FX Margin Violation Summary Report dated 6 May 2009:
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=
6A30AF5A6DF44854959951CCF01A56E2&Language=en
The data and comments provided above are for information purposes only and should not be construed as a solicitation or offer or recommendation to buy or sell any financial instrument or to enter into a transaction. Although the information contained herein is assembled from sources believed to be reliable, its accuracy cannot be guaranteed. Past performance does not guarantee future performance. No chart, strategy, software, program or tactic can guarantee gains or avoid losses. No assurance can be given that trading objectives will be met. Futures and Forex trading involve a substantial risk of loss and are not suitable for all investors. Please carefully consider your financial condition prior to making any investments.
