Known somewhat sinisterly as Rule 2-43(b),the major new compliance requirement nowinto effect impacts all U.S. regulated Forextraders, who will no longer have the ability toplace stop-loss or limit orders. Nor willtraders be able to modify or close tradesfrom the “Open Positions” window. In amove designed to rovide greatertransparency and a more accurate picture onmultiple positions profit and loss, the NFAhas adopted Compliance Rule 2-43(b),necessitating orders to be executed on aFirst In, First Out (FIFO) basis.

For an industry take on this latest move,I spoke to Tadawul FX, (also known as TDFX)a Swiss Forex Broker operating in Europe,and thus not bound by this U.S. regulation.Whilst appreciating the NFA’s aim is toincrease transparency, TDFX still continues

to offer traders the option of stop loss andlimit features and the ability to modify andclose from open positions.

Tadawul FX was founded by CEO RamziChamat in 2006 in Switzerland, and in thecourse of 2008, expanded and relocated itshead office and client operations to Cyprus,part of the European Union. Fundamentallya Swiss company, TDFX continues to runtechnical operations and systemsdevelopment from Switzerland. It strictlyadheres to vigilant European Union laws, islicensed by EU authorities (CySec/MIFID)and audited by Deloitte Ltd. Tadawul FX isunique and innovative in its approach andvision, and is changing the face of the Forex brokerage.

In sharing his views on the NFA ruling,and his firm’s response, Ramzi Chamatexplains how TDFX strongly believes thatstop loss and limit orders offer many of itstrading clients improved risk managementand most of them continue to use thesemethods effectively over time to tradeprofitably and minimize and manage theirrisk. Certainly the financial crisis hasprompted stricter and more vigilantregulations to be carried out by financial

institutions and authorities, including theNFA’s introduction of a string of lawsprohibiting US brokers from allowinghedging, as well as adjusting openedorders… “two very common practicescarried out by Forex traders,” as Chamatreminds us, “causing a stir in the industry, itforced many clients and businesses to shifttheir trading activities to Europe and otherareas where NFA compliance rules do not apply.”

Since the introduction of the NFA ruling,Tadawul FX has established many businessrelationships with US Forex companies thatchoose to redirect their clients to TDFXand/or use TDFX as a clearing house.“Being a European broker, Tadawul FX doesnot face the restrictions imposed by NFAand therefore supports clients who seek tosuccessfully trade or establish a partnershipwith a highly reputable and regulated firm,”says Chamat, who keenly emphasises howthe Tadawul FX company model is based on“honesty, clarity and durability.”

Underpinning this ethos, Chamatexplains that the management team – whichcomes primarily from a Forex background –has witnessed unethical behavior and

> nfa rules!One impact of the financial crisis has been a compulsion on the part of regulators and central governments to flex their muscles.

Foreign exchange certainly has not been immune from scrutiny, where in the United States especially, extreme volatility has made

complex FX derivative strategies more difficult to execute as liquidity on the underlying options markets becomes more scarce.

FX&MM Editor, Drew Hillier, hears how one new ruling in particular – passed by the National Futures Association – will require a

strategic rethink on the part of FX brokers and their clients alike.

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practices towards clients on the regularbasis. “As a result,” he says, “TDFX aims tostand out and differentiate itself from therest by taking an honest and high qualityapproach to trading and clients. TDFX is anew generation of brokerage firms thatleads through example by offering fair andethical trading conditions, and remainsflexible and transparent with its clients andoperations. By offering premier support toclients and affective solutions to partners,most TDFX clients join the company throughrecommendation of others.”

Chamat describes the exceptionalproducts and terms of trading that TadawulFX provides, offering dedicated andprofessional support to its clients and partners, and remains considerate andresponsive to client feedback, adjusting tochanges and developments in the market asand when necessary. “We have thousands ofForex brokers in the world,” commentsChamat, who maintains that “what makesthe difference is servicing.”

The Tadawul FX team is also keen toeducate and support its clients and partnersto enhance their experience in the business.As Chamat says: “TDFX offers one of themost user-friendly, stable, and reliabletrading platform in the market, Metatrader 4(MT4). The platform exists in more than 20languages, allowing TDFX to work withclients from around the world. The platformallows users customize the setting to trader’srequirements, use import/export indicatorsand historic data, connect Expert Advisers, and trade not only Forex, but alsoFutures, CFD’s, commodities and indices.The platform is also suitable for TDFXpartners, asset managers and traders whorequire trading information on the go as

they can take advantage of the MT4 mobileapplication on their phone or PDA.”

Chamat asserts how Tadawul FX hasideal conditions for most traders, whethermanual or automated/mechanical traders. It offers low spreads that are fixed 24 hoursa day and places no restrictions onstrategies clients implement. “Starting fromonly 1 pip on major cross currency pairs,”Chamat explains, “the spread offered toprivate individuals is more attractive thatthat provided by many liquidity providers toForex brokers and financial institutions.

In addition to very competitive spreads,clients can also be assured that they will nothave slippage on orders, and as TDFX is aSTP broker the execution is automated andall positions are covered in the real marketguaranteeing receipt of profit. Due tofavorable conditions, a significant number ofEA programmers also make TDFX their firstchoice for testing new EAs. Tadawul FXfacilitates for all types of traders by offeringaccounts tailored to their needs, from MINIaccounts (USD500+) for beginners, toPremium accounts (USD250,000+) for moreseasoned traders, there are also Corporateaccounts and Islamic accounts that strictlyadhere to the Sharia law.”

“Establishing a relationship with TDFXmeans continuous and ongoing supportfrom a personal Account Manager, access toshared systems, attractive commissions,promotion and advertisement, and mostimportantly transparency, honesty andprofessionalism,” Chamat tells us. “We are afast growing company with monthly volumeturnover of USD 22 billion. Its ongoinggrowth was recently marked by a relocationof its Head Quarters to a deluxe office in aprime location in Limassol, Cyprus and

employment of additional experienced staffto add to its team of professionals.”

Chamat goers on to say how “TDFX alsointroduced additional services forIntroducing Brokers (IB) to help them growand develop their business, a MAM systemfor their 180 asset managers, placed 12 datacenters around the world and acquired topof the range IT systems to enhance thetrading experience of the clients.”

So, this is a dynamic company with aunique approach, whose near futureprojects, explains Chamat, include

introduction of crude oil, natural gas,futures, CFD’s, Mini Dow Jones and Nasdaqand it’s own Expert Adviser to add to therange of products. “TDFX is also in theprocess of acquiring a CTA assetmanagement fund,” adds Chamat, “whichwill yield competitive returns on investmentand further contribute to its vision ofdiversification and expansion. The long termgoal for Tadawul FX is not only to continueits success in the Forex industry but also establish a more solid globalpresence and eventually develop into aninvestment institution.”

Finally, returning to the thorny issue ofthe NFA and Rule 2-43(b), Ramzi Chamatconcludes: “As an MT4 broker also offeringtrading with Expert Advisors, we feel it isimportant not to limit the functionality of thisexcellent trading platform or Eas, and as anon-US broker, we will continue to offerthese options to our clients.”with us.” >

For further information and assistance,

visit: www.tadawulfx.com

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