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 [email protected] with “Regulation of Retail Forex” 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.
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 [email protected] with “Regulation of Retail Forex” 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.