Online Forex Trading System

Question: Did anyone hear about the proposed rule to change forex margin requirements?

(Posted by: Patrice Lebon on 2010-07-28 01:49:34)

Posted by: Forex-Margin on 2010-07-28, 21:50:04

Major currency dealers are seriously concerned that the margin requirements will kill retail trading in the United States instead of providing the desired customer protection. They have formed the Foreign Exchange Dealers Coalition (FXDC) to provide a unified front in Congress. On the other hand, on the 22nd of March 2010, in a letter to Mr David Stawick secretary of the CFTC, Mr Thomas Sexton vice president of the NFA writes “the NFA applauds the Commission for proposing these rules, which will both provide important protections to retail customers, and bring greater regulatory certainty to the retail forex industry.” This obviously contradicts the arguments of FXDC. Most retail traders also do not believe that this proposed rule will provide protections to them because they will move their forex accounts to foreign waters where they will be at the mercy of forex sharks. This might well lead to the destruction of the retail forex industry in the United States. Up to now no decision has been taken, and the whole community is in wait and see mode.

Posted by: Jason Rogers on 2010-07-28, 14:05:04

If you're referring to proposed rule changes for margin requirements in the United States, it is a proposal at this point; however, it has not been enacted. The CFTC put forth the proposal and accepted comments from the public through March. There was a very large response from the public, the majority of which was against the 10:1 leverage proposal. You can find a healthy discussion on the proposal on the BabyPips forum forums.babypips.com/ forextown/ 31823-cftc-leverage-change-10-1-us-what-do-you-think.html The full text of the proposal is found here cftc.gov/ ucm/ groups/ public/ @lrfederalregister/ documents/ file/ 2010-456a.pdf