|Forex Trading Instruments||Contract Size||Type of Execution||Initial Margin
(% of contract value)
(% of initial margin)
|EURUSD||100K EUR||Market||1%||50%||1 USD|
|USDJPY||100K USD||Market||1%||50%||100 JPY|
|GBPUSD||100K GBP||Market||1%||50%||1 USD|
|USDCHF||100K USD||Market||1%||50%||1 CHF|
|USDCAD||100K USD||Market||1%||50%||1 CAD|
|AUDUSD||100K AUD||Market||1%||50%||1 USD|
|NZDUSD||100K NZD||Market||1%||50%||1 USD|
|EURGBP||100K EUR||Market||1%||50%||1 GBP|
|EURJPY||100K EUR||Market||1%||50%||100 JPY|
|GBPJPY||100K GBP||Market||1%||50%||100 JPY|
|AUDJPY||100K AUD||Market||1%||50%||100 JPY|
|XAUUSD||100 oz.||Market||1%||50%||1 USD|
|XAGUSD||2500 oz.||Market||2%||50%||2.5 USD|
|USOil||1000 barrels||Market||5%||50%||1 USD|
|Description of Derivatives or Products||Symbol||% of Margin Requirement (Leverage)|
|Australian Dollar vs Canadian Dollar||AUDCAD||2% on Contract|
|Australian Dollar vs New Zealand Dollar||AUDNZD|
|Canadian Dollar vs Japanese Yen||CADJPY|
|Euro vs Australian Dollar||EURAUD|
|Euro vs Canadian Dollar||EURCAD|
|Euro vs Swiss Franc||EURCHF|
|Euro vs New Zealand Dollar||EURNZD|
|Great Britain Pound vs Australian Dollar||GBPAUD|
|Great Britain Pound vs Canadian Dollar||GBPCAD|
|Great Britain Pound vs Swiss Franc||GBPCHF|
|Great Britain Pound vs New Zealand Dollar||GBPNZD|
|New Zealand Dollar vs Canadian Dollar||NZDCAD|
|Gold vs Renminbi Yuan||LKGCNH|
Responsibility of CCP to DB is to provide the approved products for DB to provide to its end clients. CCP is the counter party responsible for providing best available execution, reasonable, and fair prices to DBs’ clients. CCP is responsible for being counter party to DB and its trading transactions.
DB’s responsibility is to safe guarding client funds and adhering to CCP regulation. Providing basic training and service to clients, ensuring clients understand possible market risks and return are also essential responsibilities of DB. In any case if DB failed to margin out client’s money, DB should notify its CCP right away. In case of improper treatment of client’s money and making unrealistic promises or guaranteeing profits to clients, DB’s license is to be reviewed and revoked.
With CCP, DB shall at all time, honour agreed settlement terms and conditions. Failing to execute the agreed terms and condition, CCP could terminate all transactions at any given time.
Much of the guidelines are available in DB requirements. Much of the operations are around safe guarding client funds and information and Client KYC. Account opening process for a client in the case of a DB is quite similar to a bank’s account opening process. Never guarantee any profits or trick to obtain client password and churn for excessive trades for the purpose of massive commission.
Know your client, continuous learning and training, strong commitment to this project.
Refer to fee break down – much of the larger sum amounts are regulatory requirements such as the $250,000 USD capital requirement with a corresponding security bond at 15% of the firm’s capital.
Please find standard CCP-DB agreement. Contract remains until it cancelled with 30-day notice.
Only initial set up fee and other required fees as noted in the CCP-DB agreement. Your funds are secured in a CSA account in one of the three authorized CSA banks.
From our experience at CDX, it takes around 3-6 months to become regulated DB.
As soon as DB and CCP begin Liquidity Provider relationship, then the deposit and certain fees will be required.