CFTC gains clear jurisdiction over US Spot FX Market

Just an FYI for everyone.

http://www.ft.com/cms/s/0/97077034-f...nclick_check=1

That link is so fast to cover up unless you are registered there... I hate websites that do this crap. So I include a snapshot of the news article below.

It's important because on January 13, 2010 the CFTC has a proposal out to shake up the industry again. Some things they are doing are good. But one thing they are doing is disastrous and will likely kill FOREX in the U.S. as we know it thus making the good things they are doing no-effect no one will be left here to benefit from them.

The thing that is disastrous that they are changing is the max allowable leverage will be 10:1 if they get their way. Currently max leverage in the U.S. is 100:1 down from 400:1 only months ago.

So you can clearly see where this is headed. You can complain to them now and they will actually listen to you. They are giving you 60 days from January 13, 2010 to respond to them.

You should raise your concerns in a self drafted letter. It should be unique and not copy pasted from someone else. You should inform as many friends and traders at other FX sites you frequent to do this as well. It doesn't matter if they are foreign traders or not. We live in a global economy and the CFTC should be reminded of this.

It is also another chance to voice your concerns regarding the NFA rules and regulations already passed. Remember rules were made to be changed once they are deemed unfit. This is the perfect platform to complain like you have never complained before. It's quite easy to argue this as all U.S. based FX brokers have opened or have plans to open brokerages outside U.S. jurisdiction.

If not for the NFA rules, this move would not be necessary would it not?

However, do it in a civil form. You want your opinion to count and not trashed.

Here is the contact info in which to respond:

[color=#22229c][email protected][/color] with "Regulation of Retail Forex" in the subect header.

or FAX it to (202) 418-5521

or snail mail:

David Stawick, Secretary
Commodity Futures Trading Commission
1155 21st Street, N.W.
Washington, DC 20581


Further information regarding the pending changes: http://www.cftc.gov/newsroom/general...pr5772-10.html

I had send a mail to the secretary stating that :
A. It hurts the trader if the leverage is reduce to 1:10. Traders will move to overseas' brokers and will be a lost to the industry and jobs for the US.

I think they also proposed increasing the deposits of the forex brokers. This will be also bad as some of the smaller outfits will have to run.

Thanks and regards.

thanks Benny. Please help spread the word as much as you can.



PS. can we get a moderator to sticky these messages about CFTC for the next 56 days?

After 56 more days they can be dropped into the abyss.

Here's IBFX response to CFTC leverage change proposal:

Please everyone get involved in this to help defeat it. Spread the word...

Here is Oanda's Response: