Standards for banking organizations regulated by the
Federal Reserve for Retail Forex are generally comparable to rules
adopted by other regulators.
On April 3, the Board of Governors of the Federal Reserve System
(Board) adopted final rules to permit banking organizations under
its supervision to engage in retail foreign exchange (Retail Forex)
transactions (Final Rules).1 The Final Rules establish
requirements for Retail Forex transactions with regard to risk
disclosures to customers, recordkeeping, capital and margin,
business conduct, and documentation. The Final Rules cover entities
regulated by the Board, including state-chartered banks that are
members of the Federal Reserve System; bank and savings and loan
holding companies; Edge Act and agreement corporations; and
uninsured, state-licensed branches and agencies of foreign banks.
Any banking organization for which the Board is the primary
regulator should review its existing Retail Forex practices
