Whenever looking at any new proposal, one needs to ask the question... who stands to gain the most from this?
While some fx business would go off-shore, would a good portion of fx traders simply take the path of least resistance.... revert to the US domestic currency futures and options markets where leverage is better? Depends on how difficult it would be for traders to open off-shore accounts. Traders like to trade, the paperwork to facilitate that (and the taxation declaration requirements for off-shore accounts) is a pain in the rump.... maybe that's a hurdle some traders would rather avoid if they have other (easier) alternatives at their disposal.
Does make you wonder about the NFA's hand in all of this. Am sure the Retail FX industry lawyers are busy compiling argument, especially on the anti-competition front. That will be a fascinating read when their comment papers are uploaded to the cftc's comments file.
While some fx business would go off-shore, would a good portion of fx traders simply take the path of least resistance.... revert to the US domestic currency futures and options markets where leverage is better? Depends on how difficult it would be for traders to open off-shore accounts. Traders like to trade, the paperwork to facilitate that (and the taxation declaration requirements for off-shore accounts) is a pain in the rump.... maybe that's a hurdle some traders would rather avoid if they have other (easier) alternatives at their disposal.
Does make you wonder about the NFA's hand in all of this. Am sure the Retail FX industry lawyers are busy compiling argument, especially on the anti-competition front. That will be a fascinating read when their comment papers are uploaded to the cftc's comments file.