What is the NFA Compliance Rule 2-43b? (FIFO)

NFA Compliance Rule 2-43b is a rule that was implemented in 2009 by the National Futures Association (NFA) which is the Forex industry’s self-regulatory organisation in the US.

The rule requires that:

All forex accounts based in the Unites States must have orders for a customer account executed on First In, First Out basis (FIFO) in order to prevent hedging.