NFA Increases Margin Requirements for Several FX Pairs in the US

The Financial Commission / Regulatory Actions / NFA Increases Margin Requirements for Several FX Pairs in the US

The United States National Futures Association (NFA) has changed the minimum margin requirements for several currency pairs in an announcement last Friday. The new margin requirements took effect last night at 5 pm Central Time during the market open.

The impacted pairs are:

  • Norwegian Krone – 7%
  • Mexican Peso – 10%

The NFA went on to say that β€œthe Executive Committee may temporarily increase these requirements under extraordinary market conditions.” The changes look to be a response to several exchanges, including Chicago Mercantile Exchange (CME) and ICE which have adjusted their margin requirements as well.

During such volatile market conditions, traders are advised to constantly monitor their trades and orders and employ sensible risk management, which at times may involve reducing open positions or adjusting risk tolerances in anticipation of large market moves.

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