NFA Increases Required Minimum Security Deposits for Currency Pairs Involving GBP, JPY and TRY

The US National Futures Association (NFA) Tuesday announced increases in required minimum security deposits for certain forex transactions.

According to the official statement, in view of the current margin requirements of CME and ICE on foreign currency futures involving British pound, Japanese yen and Turkish lira, NFA's Executive Committee decided to increase the minimum security deposits required to be collected and maintained by forex dealer members (FDMs) in accordance with NFA Financial Requirements Section 12 for currency pairs involving the following currencies:

(Data Source: NFA)

NFA further explained: "If the currency pair includes a currency with a higher minimum requirement, FDMs must collect and maintain that higher amount." Below are the current minimum security deposits requirements for all currencies:

• TRY: 25%

• ZAR: 7%

• RUB: 20%

• BRL: 9%

• GBP: 5%

• JPY: 5%

• NZD: 3%

• AUD: 3%

• MXN: 10%

• CHF: 3%

• SEK: 3%

• NOK: 7%

• All other Majors: 2%

• All other Minors: 5%

The increase will take effect at 5:00 p.m. CT on March 13, 2023, the NFA stated.

In addition, FDMs are reminded that the Executive Committee may, depending on market conditions, increase the minimum security deposits requirements for these and other currencies.

It is the regulator's first adjustment to the minimum security deposits requirement since August 2021, when the Executive Committee determined to reduce the minimum security deposits​ for currency pairs involving the British pound to 3% and for currency pairs involving the Japanese yen to 2%.