SR-FINRA-2009-040

Proposed Rule Change to Adopt FINRA Rule 2380 to Limit the Leverage Ratio Offered by Broker-Dealers for Certain Forex Transactions

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to adopt FINRA Rule 2380 to prohibit any member firm from permitting a customer to: (1) initiate any forex position with a leverage ratio of greater than 1.5 to 1; and (2) withdraw money from an open forex position that would cause the leverage ratio for such position to be greater than 1.5 to 1.

Text of Proposed Rule Change (PDF 196 KB)
Federal Register Notice (PDF 65 KB)
Extension No. 1 (PDF 20 KB)
Response to Comments (PDF 260 KB)
Amendment No. 1 to Proposed Rule Change (PDF 45 KB)
Extension No. 2 (PDF 24 KB)
Amendment No. 2 to Proposed Rule Change (PDF 48 KB)
Notice of Filing of Amendment No. 2 (PDF 62 KB)
Extension No. 3 (PDF 24 KB)
Response to Comments on Amendment No. 2 (PDF 84 KB)
Amendment No. 3 to Proposed Rule Change (PDF 33 KB)
Letter to SEC (PDF 111 KB)
Amendment No. 4 to Proposed Rule Change (PDF 33 KB)