What a nice, civilized conversation.
Seriously.
A refreshing change from the recent drivel, attacks and spam.
Seriously.
A refreshing change from the recent drivel, attacks and spam.
10:1 could be the new leverage rule
- Thread starter Surprise
- Start date
Yeah, I trade with broker ac-markets and since they are not nfa regulated they have 100:1 leverage.
But did it came a fact now? I knew nfa was going to change some rules but what did it actually change?
But did it came a fact now? I knew nfa was going to change some rules but what did it actually change?
Exactly. Once the government takes 100:1 leverage what's to stop them froem killing any kind of leverage? Anyone notice the CFTC allows CME to offer 50:1 leverage for trading currency contracts in the futures market? This isn't about leverage. It's about the CFTC forcing traders onto exchange. I for one will not join such a death march.
Contact secretary@cftc.gov today!
From Oanda:
The recently released CFTC regulatory proposal for retail forex transactions has rightly received considerable attention --- particularly the proposal to limit leverage to 10:1. (See CFTC press release.)
I thought I should share with you OANDA's position on this new regulatory proposal. But first, I would like to point out that this is only a proposal at this time. The CFTC is seeking public comment, and they may well modify the proposed rules based on the feedback they receive.
As most of you know, OANDA has always conducted its business very conservatively and has worked very hard to provide the best value possible for our trading clients. Moreover, we at OANDA very much welcome regulation and have operated within strongly regulated environments. We particularly welcome regulatory activity that makes the forex market more fair, efficient and open, and we welcome regulatory activity that protects trading clients.
Occasionally, when important, we speak out on behalf of our clients, and in this particular case we strongly believe that limiting leverage to 10:1 is highly restrictive and discriminatory against retail clients because it limits their trading choices. The proposed limit is not in the best interest of the trading public and additionally discriminates against forex dealers operating out of the United States, further limiting choice.
Hence, OANDA strongly opposes this new rule, and we believe it works against the open, accessible forex marketplace we have been trying to create. We will work hard to vigorously oppose the proposed leverage limit, and we are working together with other forex firms, such as FXCM and Gain Capital, to oppose this new rule.
You can play an important role in this effort and help influence the CFTC. If you have views on this matter, then we would like to encourage you to make them known to the CFTC by sending them your feedback. You do not have to live in the United States or be a U.S. citizen for your views to be heard.
The easiest way to give feedback is to send an email to secretary@cftc.gov with âRegulation of Retail Forexâ in the subject line. However, you must provide your address and contact information in the email in order for it to be considered by the CFTC. Also, you should be aware that the CFTC has the right to publish your comments, and will publish your email on a public page on their website. The deadline for comments is March 13, 2010.
Thank you for your interest and help in this matter.
The recently released CFTC regulatory proposal for retail forex transactions has rightly received considerable attention --- particularly the proposal to limit leverage to 10:1. (See CFTC press release.)
I thought I should share with you OANDA's position on this new regulatory proposal. But first, I would like to point out that this is only a proposal at this time. The CFTC is seeking public comment, and they may well modify the proposed rules based on the feedback they receive.
As most of you know, OANDA has always conducted its business very conservatively and has worked very hard to provide the best value possible for our trading clients. Moreover, we at OANDA very much welcome regulation and have operated within strongly regulated environments. We particularly welcome regulatory activity that makes the forex market more fair, efficient and open, and we welcome regulatory activity that protects trading clients.
Occasionally, when important, we speak out on behalf of our clients, and in this particular case we strongly believe that limiting leverage to 10:1 is highly restrictive and discriminatory against retail clients because it limits their trading choices. The proposed limit is not in the best interest of the trading public and additionally discriminates against forex dealers operating out of the United States, further limiting choice.
Hence, OANDA strongly opposes this new rule, and we believe it works against the open, accessible forex marketplace we have been trying to create. We will work hard to vigorously oppose the proposed leverage limit, and we are working together with other forex firms, such as FXCM and Gain Capital, to oppose this new rule.
You can play an important role in this effort and help influence the CFTC. If you have views on this matter, then we would like to encourage you to make them known to the CFTC by sending them your feedback. You do not have to live in the United States or be a U.S. citizen for your views to be heard.
The easiest way to give feedback is to send an email to secretary@cftc.gov with âRegulation of Retail Forexâ in the subject line. However, you must provide your address and contact information in the email in order for it to be considered by the CFTC. Also, you should be aware that the CFTC has the right to publish your comments, and will publish your email on a public page on their website. The deadline for comments is March 13, 2010.
Thank you for your interest and help in this matter.
Being a former lobbyist himself, Scott should be the easiest to **persuade**
http://www.huffingtonpost.com/2009/09/21/former-lobbyist-nominated_n_293690.html
FXDC: sic him!
Edit: also, Jill
http://www.huffingtonpost.com/2009/11/18/cftc-regulator-gets-deriv_n_362660.html
http://www.huffingtonpost.com/2009/09/21/former-lobbyist-nominated_n_293690.html
FXDC: sic him!
Edit: also, Jill
http://www.huffingtonpost.com/2009/11/18/cftc-regulator-gets-deriv_n_362660.html
Jason Rogers
ET Sponsor
PlusMinus, haven't forgotten about you. Should have information for you today (was out of the office yesterday).
Jason Rogers
ET Sponsor
While the appropriate amount of leverage can be debated, the more important point is that traders are going to trade with the broker where they can have the amount of leverage they want. Even if you believe someone should not use more than 10 times leverage, the proposal does not stop someone from trading with an overseas broker. Money moves freely and traders will vote with a click of the mouse. Traders will make the decision whether to tie up 10 times more capital in their forex account or simply move it overseas to continue trading as they have been.
The unintended consequence of this proposal is that traders will be forced to trade overseas with non-US brokers if they want flexible leverage. Instead of helping to advance protection for forex traders and prevent fraud, the proposal will force many traders out of their jurisdiction. This will do the complete opposite of what is intended.
Here are the points made by the Forex Dealers Coalition.
--Today the U.S. retail forex industry can boast hundreds of thousands of live accounts. Should the 10 to 1 leverage rule be adopted 90% of those accounts can be expected to go offshore. And the first place theyâll go is to the United Kingdom where customers can trade with leverage as high as 200 to 1.
--The U.S. retail forex industry (forex dealers and introducing brokers) employs thousands of people. The vast majority of these jobs are high paying, white collar jobs that require advanced
education and range from software developers to accountants to foreign exchange dealers. The industry is just as much a high tech industry as it is a financial services industry.
--The domestic industryâs revenue is well over $1 billion. This revenue is money generated from a product that is in many ways an export. Furthermore, as capital markets open in the BRIC
countries the number of new accounts that will flow out of places like China and India will lead to huge job and revenue gains in the United States. Trillions of dollars of trade volume are at stake. This is money that could (and should) be booked in the United States as taxable revenue. But if this rule passes the United States could well be costing itself billions of dollars in taxes down the road.
--The problem of Forex fraud will get worse absent legitimate dealers offering retail forex. Retail forex fraud is not something that is caused by the actions of retail forex dealers; rather it is caused by unlicensed con-men who masquerade as forex experts promising silly and unjustifiable returns before disappearing with customer funds. That is why the FXDC fully supports the CFTCâs rule requiring all introducing brokers be licensed. That rule will solve forex fraud, not 10 to 1 leverage.
--The 10 to 1 leverage rule will be highly unpopular with traders. The fact is 100 to leverage is very popular with the retail forex trading public. They simply will not accept 10 to 1 leverage.
--Unregulated dealers from around the world will also be the beneficiaries of the 10 to 1 leverage rule. These unregulated forex dealers donât have to worry about capital requirements, risk
management models, marketing ethics, dealing practices or even returning a customerâs funds. These dealers will be out of the reach of the CFTC and they will thrive.
http://blogs.fxstreet.com/francesc/files/2010/01/competitiveness_summary.pdf
The unintended consequence of this proposal is that traders will be forced to trade overseas with non-US brokers if they want flexible leverage. Instead of helping to advance protection for forex traders and prevent fraud, the proposal will force many traders out of their jurisdiction. This will do the complete opposite of what is intended.
Here are the points made by the Forex Dealers Coalition.
--Today the U.S. retail forex industry can boast hundreds of thousands of live accounts. Should the 10 to 1 leverage rule be adopted 90% of those accounts can be expected to go offshore. And the first place theyâll go is to the United Kingdom where customers can trade with leverage as high as 200 to 1.
--The U.S. retail forex industry (forex dealers and introducing brokers) employs thousands of people. The vast majority of these jobs are high paying, white collar jobs that require advanced
education and range from software developers to accountants to foreign exchange dealers. The industry is just as much a high tech industry as it is a financial services industry.
--The domestic industryâs revenue is well over $1 billion. This revenue is money generated from a product that is in many ways an export. Furthermore, as capital markets open in the BRIC
countries the number of new accounts that will flow out of places like China and India will lead to huge job and revenue gains in the United States. Trillions of dollars of trade volume are at stake. This is money that could (and should) be booked in the United States as taxable revenue. But if this rule passes the United States could well be costing itself billions of dollars in taxes down the road.
--The problem of Forex fraud will get worse absent legitimate dealers offering retail forex. Retail forex fraud is not something that is caused by the actions of retail forex dealers; rather it is caused by unlicensed con-men who masquerade as forex experts promising silly and unjustifiable returns before disappearing with customer funds. That is why the FXDC fully supports the CFTCâs rule requiring all introducing brokers be licensed. That rule will solve forex fraud, not 10 to 1 leverage.
--The 10 to 1 leverage rule will be highly unpopular with traders. The fact is 100 to leverage is very popular with the retail forex trading public. They simply will not accept 10 to 1 leverage.
--Unregulated dealers from around the world will also be the beneficiaries of the 10 to 1 leverage rule. These unregulated forex dealers donât have to worry about capital requirements, risk
management models, marketing ethics, dealing practices or even returning a customerâs funds. These dealers will be out of the reach of the CFTC and they will thrive.
http://blogs.fxstreet.com/francesc/files/2010/01/competitiveness_summary.pdf