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CFTC Forex Proposal; US Retail Market to Disappear?
Turnkey Trading Partners ^ | 1/19/10 | James Bibbings

Posted on 01/19/2010 10:55:38 AM PST by h20skier66

On January 13th, 2010 the Commodity Futures Trading Commission (“CFTC”) issued a press release regarding its highly anticipated rule proposal for the regulation of retail forex transactions. The proposal seeks to adopt a new regulatory scheme to implement the CFTC Reauthorization Act of 2008.

The following is a summary listing of the major provisions included in the CFTC’s proposal. While reading through these items please note that they are not the only changes to the law which have been proposed. Rather, these items represent what will be the most significant changes to the industry through the eyes of a former regulator and industry professional; they are presented in order of most important to least.

This provision of the proposal is likely to be more devastating to the United States forex industry than any other. The reason? Requiring RFED’s to be entirely liable for the solicitation activity and performance of all their introducing brokers will prove to be impossible. Since there will be no such thing as an independent forex IB, it does not seem reasonable to think that the handful of RFEDs in the United States will be willing to take on the risk of guaranteeing all of the nation’s introducing agents.

(Excerpt) Read more at turnkeytradingpartners.com ...


TOPICS: Business/Economy; Education; Government; Politics
KEYWORDS: cftc; forex; ib; registration
One of the best articles written on the most significant regulatory change to the commodity and foreign exchange markets in perhaps the last 25 years.
1 posted on 01/19/2010 10:55:39 AM PST by h20skier66
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To: h20skier66

the retail forex market is completely dominated by bucketshops. good riddance to it.


2 posted on 01/19/2010 10:57:37 AM PST by the invisib1e hand (screw 'em.)
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To: h20skier66

Yah, Jim’s always been right on top of CFTC developments. One of the few gents who is both willing and able to sort through all their bumf (compare this very clear article, for example, to the swirl of nonsense emanating about new position limits on NYMEX).


3 posted on 01/19/2010 11:12:55 AM PST by SAJ
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To: the invisib1e hand

I trade FX for a living, have so for the last five years...

This smells more like the Futures and Options market players want to kill retail FX because it has taken away too much of their business; of course, all couched in the disguise of “protection.”

The business will just move to Foreign FX brokers (most of which who really are criminal bucket shops) until they make it completely illegal to move any money out of the country.

Wouldn’t want the peasantry to actually have an opportunity to become wealthy now would we?


4 posted on 01/19/2010 11:39:58 AM PST by Mister Muggles (.Seattle: A city full of Liberal men with vaginas.)
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To: Mister Muggles
Wouldn’t want the peasantry to actually have an opportunity to become wealthy now would we?

un hunh. Whatever sense their was in your post evaporated with this.

protection isn't merely a "guise." But have a prosperous day, Soros. I know better than to debate with a libertarian.

5 posted on 01/19/2010 11:44:48 AM PST by the invisib1e hand (denial springs eternal.)
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To: the invisib1e hand

I see, because I trade currencies...I am a Libertarian and my name is SOROS...

You dont know anything about ME , pinhead, so keep your moronic labels to yourself.

FYI, I don’t need PRIVATE, NON GOVERNMENT groups like the NFA, etc with no real regulating authority acting like they can make rules to limit MY opportunities, much less completely DESTROY a domestic market that offers a REAL opportunity for someone to actually accrue wealth...and THAT is all this is about...REMOVING opportunities and choices.

Comprende, HUGO?


6 posted on 01/19/2010 12:03:54 PM PST by Mister Muggles (.Seattle: A city full of Liberal men with vaginas.)
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To: Mister Muggles
wrong. you're a libertarian because libertarians make remarks about oppressing liberty (ie to feed yourself to bucketshops) under the disguise of "protection." Libertarians know that they are smarter than everyone else and need no such "protection," though, in truth, they benefit from its unseen blessings like buildings benefit from gravity.

You're "soros" because you made sure we all knew that you've been "trading forex" for 5 years and "make a living at it," so clearly you're a pretty sharp operator, like Soros, aren't you.

You play videogames with money and, according to your claims, have been very lucky for a long time. Hope it holds out for ya.

Now I'm going to end my comments here, even though you've given me fodder to go on and on.

7 posted on 01/19/2010 12:24:28 PM PST by the invisib1e hand (denial springs eternal.)
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