Foreign Exchange Dealers Coalition (FXDC)

What Was the Foreign Exchange Dealers Coalition (FXDC)?

The Foreign Exchange Dealers Coalition (FXDC) was a fleeting professional alliance made out of the nine biggest U.S. foreign exchange dealers, in presence from 2007-2010.

Figuring out Foreign Exchange Dealers Coalition

The Foreign Exchange Dealers Coalition (FXDC) was shaped in 2007 and is comprised of nine major foreign exchange (FX) dealers. Its goal was to make awareness and recognition of forex dealers and their perspectives in regards to regulation implementation in the industry. Foreign exchange dealers partaking in the coalition endeavored to utilize their collective power to influence the industry. The FXDC stopped operations in 2010.

The forex markets were generally unregulated until the death of the Commodity Futures Modernization Act of 2000. The FXDC became associated with recommendations tending to major regulatory changes in the forex industry, remarkably regulatory changes put forward by the Commodity Futures Trading Commission (CFTC). It expected to do this by protecting the interests of investors while guaranteeing there was no disruption to business activities.

The commission announced changes in regulation following the death of two key laws that were passed by Congress.

1. CFTC Reauthorization Act of 2008. A portion of the key provisions to the act incorporated another category to register retail forex dealers, the application of the commission's enemy of fraud authority to specific retail off-exchange forex transactions, and least capital requirements for retail forex dealers
2. [Dodd-Frank Wall Street Reform and Consumer Production Act](/dodd-frank-monetary regulatory-reform-bill) of 2010. Dodd-Frank required that all off-exchange retail forex transactions be led by federal agency regulations. Different requirements alluded to divulgences and recordkeeping, reporting, and documentation.

Different Considerations

The FXDC likewise tended to mandatory registration required by the CFTC through the National Futures Association (NFA) for [retail foreign exchange dealers](/retail-foreign-exchange-seller rfed) (RFEDs), futures commission merchants (FCMs), forex commodity pool operators (CPOs), and commodity trade advisors (CTAs).

Taking on these regulatory changes was important to the CFTC to shield the American public from retail foreign exchange fraud. The FXDC protested, saying the new rules would put an undue burden on and smother the foreign exchange industry.

Features

• The goal of the FXDC was to make awareness and recognition of forex dealers and their perspectives with respect to regulation implementation in the industry.
• The FXDC became engaged with proposition tending to major regulatory changes in the forex industry, remarkably regulatory changes put forward by the CFTC.
• The Foreign Exchange Dealers Coalition (FXDC) was an alliance made out of the biggest U.S. foreign exchange dealers, established in 2007.