| Proposed CFTC Regulation |
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| Thursday, 21 January 2010 19:23 |
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In early January, the Commodity Futures Trading Commission (CFTC)—the U.S. government agency responsible for the regulation of retail foreign exchange—proposed new rules for off-exchange retail foreign exchange. If enacted in their current form, these rules would have an enormous impact on the U.S. forex industry. The proposed rules call for restricting leverage to 10-to-1, even for the most widely traded currency pairs. To read the full 193 page text of the proposed rules, please visit here. While we believe that increased regulation brings credibility to our growing industry, we feel that imposing onerous regulations is counterproductive in the marketplace. We are actively lobbying against restricting leverage to 10-to-1. If this new rule passes it will dramatically raise the barrier of entry for new Forex traders. Margin requirements will be raised making it difficult for new traders to get started with minimal capital. We are working along side our many partners to provide a united industry front to lobby congress and the CFTC. PLEASE NOTE: We are in a critical sixty-day period during which the CFTC will accept comments from the public, including industry participants, on proposed rule changes. If you would like to voice your concern for or against the proposal, you can contact the CFTC directly by sending an e-mail to This e-mail address is being protected from spambots. You need JavaScript enabled to view it with “Regulation of Retail Forex” in the subject line. There are other options if you wish to avoid the regulations imposed by the CFTC. Most reputable Forex firms offer offshore options. If you would like more information on these additional options please send us an email |
| Last Updated on Thursday, 21 January 2010 19:24 |