CFTC public comment period for proposed new rules for off-exchange retail foreign exchange is almost over.
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.
The proposed rules call for restricting leverage to 10:1, even for the most widely traded currency pairs. To read the full fifty page text on the proposed rules please visit: http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2010-456a.pdf. If enacted in their current form, these changes would have a significant impact on clients trading with firms regulated by the CFTC, directly limiting individual freedom to customize risk/reward.
While FXCM believes that increased regulation brings credibility to our growing industry, we feel that imposing onerous regulations is counterproductive in the marketplace. FXCM is actively lobbying against restricting leverage to 10:1. We are working with other Forex Dealer Members, as part of the Foreign Exchange Dealers Coalition, to provide a united industry front to lobby congress and the CFTC.
Note for FXCM clients: The option exists, at any time, to open accounts with any one of FXCM’s foreign regulated entities, including FXCM LTD, FXCM Asia, or FXCM Australia. These entities provide flexible leverage levels and are not impacted by CFTC rules.
You can still help!
The critical sixty-day period during which the CFTC will accept comments on the proposed rule changes from the public is drawing near (March 20, 2010). 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 firstname.lastname@example.org with “Regulation of Retail Forex” in the subject line. The CFTC is required to publish comments on the proposed rules and has the power, although not required, to change the proposed rules based on the comments received.
Forex Capital Markets (FXCM) is a leading global forex broker that caters to both retail and institutional markets. Founded in 1999, FXCM is one of the largest brokers, regulated by several of the world’s most respected financial authorities.
At the heart of FXCM’s client offering is No Dealing Desk* forex trading. FXCM offers 24-hour online forex and CFD trading† with no re-quotes. Clients have Direct Market Access to some of the world's largest forex liquidity providers, enabling FXCM to offer clients spread as low as 1 pip on major crosses. Clients also have the benefits of mobile trading, one-click order execution and trading from real-time charts. FXCM’s CFD product allows traders to trade oil, gold, silver and stock indices, along with forex on one platform. In addition to currency and CFD trading, FXCM offers educational courses on forex trading, and provides free news and research through DailyFX.com.
* Please note, FXCM Micro, in its discretion, may or may not offset individual transactions unlike transactions in most FXCM Standard accounts. For additional information, click here.
† Please be advised that CFD trading is not available for U.S. residents.
Risk Disclaimer:Trading FX, CFDs and Spread Betting on margin carries a high level of risk, and may not be suitable for all investors read full disclosure.