This compliance rule affects United States based accounts.
"... and also restricted the ability of brokers to wreck profits by claiming price feed errors (extremely good)." www.forexpeacearmy.com
"... Many traders have experienced the ripoff where a brokerage waits days (or weeks or even months) to say “We're sorry, but there was a price feed error, so 40 pips of your 50 pips profit are gone.” As of June 12th, 2009, that semi-legal form of theft ends for good with NFA registered brokers.
For positions established after June 12th, brokers are greatly restricted from making price adjustments to client orders. There are only 2 exceptions.
First, if a customer disputes a price, adjustments may be made, but ONLY in the customer's favor.
Second, if the broker has an exclusively straight-through processing model and the liquidity provide makes a price adjustment. In these cases, the customer must be notified within 15 minutes. Yes, that is 15 minutes from the order being executed to send a notification to the customer. Save those emails with full headers – you may need them to prove that they waited 20 minutes to notify you. If the broker isn't exclusively STP, then they don't even get 15 minutes.
As for spike trading and broker rules – I really am not sure how this will work with a non-STP broker. They won't be able to adjust the price. I have a feeling we may see some interesting legal cases starting in late June.
For those of you contacting the NFA to complain about the hedging rule, make sure to take a moment to thank them for the new protection they've given to traders to keep brokers from being able to make up prices later. wow, that means no NFA broker will fill you on the news anymore...."
"... This is the next step of regulating the wild west of forex...the same thing happened to futures, personally I think the odds are against the retail trader in forex, unless your strategy is about taking advantage of price discrepancies. If so you better take advantage as much as you can now." www.forexpeacearmy.com
Definition of 'NFA Compliance Rule 2-43b' NFA Compliance Rule 2-43b
"... It also prohibits price adjustments to executed customer orders except to resolve a complaint in the customer's favor or in the case of certain straight-through processing transactions, and these changes must be reviewed, approved and documented by the NFA." www.investopedia.com
"... The rule also disallows the adjustment of customer orders by an FDM except in cases requiring the settlement of a customer dispute or when an FDM executes trades using a "straight-through processing" model." www.investorwords.com
"... The NFA set forth new regulations for US forex brokers. The new rule is in two parts, with one being the most talked about.
The first part of rule 2–43 is specifics and limits on how forex brokers can adjust customer orders. The rule basically eliminates arbitrary adjustments made by forex brokers." About.com Forex Trading - New Forex Hedging Rules forextrading.about.com