The deal establishes a preliminary framework for the exchange of information and the development of technology standards.
FXall and NFA will develop, test and launch automated trade practice and surveillance systems and also procedures and processes necessary for FXall to fulfill its SEF self-regulatory obligations.
Upon the issuance of the Commodity Futures Trading Commission’s final SEF rules, NFA and FXall anticipate that they will enter into a formal regulatory services agreement.
FXall chief regulatory officer Wayne Pestone said that while SEF rules are still in development, our agreement with NFA is a step in the right direction toward our readiness for SEF registration with the CFTC.
"We are committed to meeting the new regulatory responsibilities that will be expected of SEFs. NFA’s experience and customized surveillance systems will allow us to prepare for quick deployment once SEF requirements are finalized," added Pestone.
