Forex and government regulation

Forex is based on the principle of free convertibility of currencies, which implies the absence of government intervention in foreign exchange transactions conclusion (there is no official exchange rate, there are no restrictions on the direction of prices and transaction volumes), and the guarantees of freedom of such operations. At the same time, usually set rules and limits on the provision of intermediary services, which are regulated primarily customer relationships (trader) and intermediary (broker).

Office of Financial Regulation and Supervision (English Financial Services Authority, FSA) performs regulatory functions in the financial markets in the UK.

In the U.S., the regulator of the currency market is the government's "Commission on futures trade in goods" (born Commodity Futures Trading Commission, CFTC). In addition, a lot of work to develop rules of trading, the conditions for granting brokerage services and conflict resolution NGO conducts "National Futures Association" (English National Futures Association, NFA). The organization also collects and analyzes special reports, which are required to provide brokers - the members of the association. To listen NFA requirements, not only in the U.S., as U.S. traders and private funds will not open accounts in the company, which does not comply with them.

NFA rules and requirements more stringent than the requirements of FSA. Sometimes they do not so much help and protect, restrict how much a trader. A recent example - the requirement to close the client transaction must rule on the FIFO (first come - first out).

On July 15, 2011 Act restrictions Dodd-Frank (born Dodd-Frank Wall Street Reform and Consumer Protection Act), under which the U.S. citizens (natural persons and legal entities) are prohibited OTC transactions in financial instruments.