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-   -   Extraterritorial power of the Dodd-Frank Fin. Reg. Bill (https://www.forexfactory.com/showthread.php?t=253596)

Forexia Aug 30, 2010 4:06pm | Post# 1

Extraterritorial power of the Dodd-Frank Fin. Reg. Bill
 
I am starting this thread to continue the discussion of the topic above which was really about the "extraterritorial" power of the Dodd-Frank Fin. Reg. Bill if anybody so wishes. I have been blocked by Pipmutt, the thread starter of the previous thread of the same name due to the fact that I might be on the "Ignore" list of the threadstarter.

So anyway, it was a good discussion and I came away having learned a lot from everybody. But I really believe now we should do justice to the title of the thread and really talk about what the title says. So if anybody still wishes to continue discussing this topic on "Extraterritorial" issue from Dodd-Frank Fin. Reg. Bill, in case if the proposed 10:1 leverage law passes, here is the place.

Good trading to all!

Forexia Aug 30, 2010 5:04pm | Post# 2

We will continue the discussion that REALLY pertains to the title of this thread.

Pretend this is Oct. 19, 2010 and CFTC has just passed a law that reduced the leverage to a ratio that we cannot accept, what can we do?

Under Dodd-Frank Fin. Reg. Bill, what choices and recourses do we have other than taking our money to some offshore countries?

The one thing that I would like to know is would non-US institutions in reputable countries be able to offer different leverage still to their own countries' citizens and just offer a low leverage only to US citizens?

I welcome any speculations and thoughts.

Forexia Aug 30, 2010 5:11pm | Post# 3

Dodd-Frank Fin. Reg. Bill
 
Btw, this is the portion of the Bill that pertains to this "extraterritorial" power that gives rise to the title of this thread:

Dodd-Frank SEC. 929Y. STUDY ON EXTRATERRITORIAL PRIVATE RIGHTS OF ACTION.
(a) In General- The Securities and Exchange Commission of the United States shall solicit public comment and thereafter conduct a study to determine the extent to which private rights of action under the antifraud provisions of the Securities and Exchange Act of 1934 (15 U.S.C. 78u-4) should be extended to cover-
(1) conduct within the United States that constitutes a significant step in the furtherance of the violation, even if the securities transaction occurs outside the United States and involves only foreign investors;
(2) conduct occurring outside the United States that has a foreseeable substantial effect within the United States.

ecTrade Aug 30, 2010 6:02pm | Post# 4

Okay, it looks like they're soliciting public comment and plan to conduct a study. So, nothing has really been determined yet. Hopefully it never will, at least in favor of restrictions.

Forexia Aug 30, 2010 6:09pm | Post# 5

Okay, it looks like they're soliciting public comment and plan to conduct a study. So, nothing has really been determined yet. Hopefully it never will, at least in favor of restrictions.
You mean Dodd-Frank Bill? Currently, it is a "Study". Wonder how you can give them comments?

Forexia Aug 30, 2010 6:10pm | Post# 6

Restrictions? Yeah, way too much already. I used to think US is a free country. I never knew how much restrictions existed until there is something really affects me personally.

Turveyd Aug 30, 2010 6:23pm | Post# 7

I see an opportunity here to setup accounts for people via a UK broker for a small take on all money deposited into the account or withdrawn

Ways around everything


Land of the Free LOL

Forexia Aug 30, 2010 6:36pm | Post# 8

I see an opportunity here to setup accounts for people via a UK broker for a small take on all money deposited into the account or withdrawn

Ways around everything


Land of the Free LOL
I want Free and free, Dammn it!!

But true thou, problems do create opportunities, profitable ones too. Maybe that's why Dodd and Frank want to set this restriction up? You are related to them, aren't you? ...

Forexia Aug 30, 2010 6:37pm | Post# 9

If this Dodd thing really goes to pass, depending on how it is, there might also be a surge in dual citizenship and foreign residency for US traders.

So might want to think about setting up a Foreign Consultancy agency too.

Forexia Aug 30, 2010 7:26pm | Post# 10

Might also be a good idea to trade and stack up as much profit as possible!

go4pips Aug 30, 2010 8:38pm | Post# 11

Fin Reg was signed
 
by Obama on July 19. Retail forex for US citizens(unless you have a spare 5-10 million0 will most likely change drastically on Oct. 19-like 10:1 leverage and overseas brokers not being able to have our accts. Wise up NOW, US citizens!

Forexia Aug 30, 2010 9:01pm | Post# 12

by Obama on July 19. Retail forex for US citizens(unless you have a spare 5-10 million0 will most likely change drastically on Oct. 19-like 10:1 leverage and overseas brokers not being able to have our accts. Wise up NOW, US citizens!
So what do you think US citizens should can do, given the "extraterritorial" power of CFTC in Dodd-Frank?

And also, what about non-US citizens who currently trade with US brokers? After Oct. 19, provided 10:1 leverage rule passes, are non-US citizens stuck with this ridiculous leverage as well, unless of course they change brokers?

Ipndasno Aug 31, 2010 9:41pm | Post# 13

If this Dodd thing really goes to pass, depending on how it is, there might also be a surge in dual citizenship and foreign residency for US traders.

So might want to think about setting up a Foreign Consultancy agency too.
I've been researching this concept (loop hole) for the passed few days, before this "CFTC" release.

A second passport is possible, but comes with a big price tag. some countries are cheaper than others.

Privacy is the issue. US citizens are not suppose to have dual citizenship.
A passport from the Caribbeans is an option! But I am sure there are some other options.. We need to get creative!

pilotui Aug 31, 2010 10:07pm | Post# 14

Hmmm
 
I've been researching this concept (loop hole) for the passed few days, before this "CFTC" release.

A second passport is possible, but comes with a big price tag. some countries are cheaper than others.

Privacy is the issue. US citizens are not suppose to have dual citizenship.
A passport from the Caribbeans is an option! But I am sure there are some other options.. We need to get creative!
My Grandfather was born in England...I wonder how I can qualify for some type of dual citizenship????????

Forexia Aug 31, 2010 10:51pm | Post# 15

My Grandfather was born in England...I wonder how I can qualify for some type of dual citizenship????????
That's what I was thinking. What if somebody was born in a foreign country and immigrated to US and since became an US citizen? Does that person automatically renounce his/her former citizenship upon arrival at US? If no, then wouldn't that person be having dual citizenship?

Pilotui, for you to become a citizen of another country, it's gonna depend on the Immigration law of that country. But generally, to my knowledgre, you have to:

1) Have lived in that country for a period of time, usually several years

or

2) have been born in that country or on any premises or places under the domain of that country, e.g. on a ship or airplane registered in that country

or

3) be married to a citizen of that country

or

4) to be born to a parent who is a citizen of that country AND the country recognizes this inherited citizenship

Forexia Aug 31, 2010 11:22pm | Post# 16

I've been researching this concept (loop hole) for the passed few days, before this "CFTC" release.

A second passport is possible, but comes with a big price tag. some countries are cheaper than others.

Privacy is the issue. US citizens are not suppose to have dual citizenship.
A passport from the Caribbeans is an option! But I am sure there are some other options.. We need to get creative!
And more importantly, what this dual citizenship would entitle you to have? If you being a citizen of another country but is still expected to pay taxes to Uncle Sam and thus reveal your investment overseas, then dual citizenship would not work. According to a Podcast that I have listened to, looks like CFTC will be working with IRS to enforce this "extraterritorial" power.

And if that's the case, is there a way for you or would you want to renounce US citizenship and totally become a citizen of another country?

azjeff Aug 31, 2010 11:25pm | Post# 17

Not so quick. Even if you did renounce your citizenship and took citizenship with another country then you will have to payoff uncle same before you leave. Look here http://www.thestreet.com/story/10423...tizenship.html
USA is becoming more and more of a socialist country.

Regards,
Jeff

And more importantly, what this dual citizenship would entitle you to have? If you being a citizen of another country but is still expected to pay taxes to Uncle Sam and thus reveal your investment overseas, then dual citizenship would not work. According to a Podcast that I have listened to, looks like CFTC will be working with IRS to enforce this "extraterritorial" power.

And if that's the case, is there a way for you or would you want to renounce US citizenship and totally become a citizen of another country?

Forexia Aug 31, 2010 11:50pm | Post# 18

Not so quick. Even if you did renounce your citizenship and took citizenship with another country then you will have to payoff uncle same before you leave. Look here http://www.thestreet.com/story/10423...tizenship.html
USA is becoming more and more of a socialist country.

Regards,
Jeff
That's a great article! But wow, this is ridiculous!! I am surprised though how steathily that law got passed without a peep from people. I thought those rich people would, at least, rise up protest it against. After all, when it comes to tax burdens, they are the ones who would have to pay more than us and they would have the most incentive to leave.

And this law is a total invasion of your privacy. Basically it makes you empty out everything out of your piggy bank and then force you to give a portion to Uncle Sam.

pinoyboy Sep 1, 2010 12:21am | Post# 19

CFTC Final
 
http://www.cftc.gov/PressRoom/PressR...pr5883-10.html - thx to pipmutt

Toothman Sep 1, 2010 12:52pm | Post# 20

FX.Sol UK. ( my broker) says they see nothing in the new regulation that would force a US citizen to move their account back to the US. No changes to 400:1 leverage and hedging allowed. Don't know why IBFX is telling their people differently.


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