NFA Compliance Rule 2-43b

Definition

A rule established in 2009 by the National Futures Association (NFA) that requires Forex Dealer Members (FDM) to offset positions in a customer account on a first-in, first out basis in order to prevent the use of hedging in forex trades. The rule also disallows the adjustment of customer orders by an FDM except in cases requiring the settlement of a customer dispute or when an FDM executes trades using a "straight-through processing" model.
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