The National Futures Association (NFA) announced Tuesday that it is raising the minimum safe deposit requirements for some currency trades.

According to the official statement, in light of the current margin requirements on currency pair futures linked to the British Pound, Japanese yen and Turkish lira by CME and the Intercontinental Exchange (ICE), the NFA Executive Committee has decided, in accordance with Article 12 of the NFA Financial Requirements, to establish a new policy for currency pairs linked to the following currencies: Increase the minimum safe deposit requirements for Money Trader members (FDM) to receive and maintain:

The NFA further explains that if a currency in a currency pair has a higher minimum margin requirement, the FDM is required to collect and maintain a minimum safe deposit amount as required by the higher party. The following are the current minimum safe deposit requirements for all currencies:

Turkish lira (TRY) : 25%

South African rand (ZAR) : 7%

Russian ruble (RUB) : 20%

Brazilian real (BRL) : 9%

Sterling (GBP) : 5%

Japanese Yen (JPY) : 5%

New Zealand dollar (NZD) : 3%

Australian dollar (AUD) : 3%

Mexican peso (MXN) : 10%

Swiss Franc (CHF) : 3%

Swedish krona (SEK) : 3%

Norwegian krone (NOK) : 7%

Other major currency pairs: 2%

Other minor currency pairs: 5%

The NFA said the increase in minimum security deposit requirements will take effect on March 13, 2023 at 5 p.m.

In addition, the organization also reminded currency dealer members that the NFA Executive Committee may make further adjustments to the minimum safe deposit requirements for these and other currencies based on market conditions.

This is the first change to the NFA's minimum security deposit requirements since August 2021. At that time, the NFA lowered the minimum safe deposit threshold for sterling pegged currency pairs to 3% and for yen pegged currency pairs to 2%.