The U.S. Commodity Futures Trading Commission announced Tuesday that it has published new rules strengthening its oversight of one of biggest trouble spots under its authority, retail foreign currency transactions.

The rules implement provisions of the US regulatory reform effort that give the CFTC broad authority to register and regulate firms wishing to serve as counterparties to, or to intermediate, retail foreign exchange transactions.

They establish requirements for, among other things, registration, disclosure, recordkeeping, financial reporting, minimum capital and other business conduct and operational standards. The CFTC says that the final rules include requirements designed to ensure the financial integrity of firms engaging in retail forex transactions, and provide robust customer protections. The rules are scheduled to take effect October 18.

“These rules of the road will help protect the American public in the largest area of retail fraud that the CFTC oversees: retail foreign exchange,” said CFTC chairman Gary Gensler. “All CFTC registrants involved in soliciting and selling retail forex contracts to consumers will now have to comply with rules to protect the investing public.”

IE