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 CFTCs 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 RFEDs 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 nations introducing agents.
(Excerpt) Read more at turnkeytradingpartners.com ...
the retail forex market is completely dominated by bucketshops. good riddance to it.
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).
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?
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.
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?
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.
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