Is our future as traders threatened? | Forex Factory

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Is our future as traders threatened?

  • #1
  • First Post: Aug 10, 2010 1:35am Aug 10, 2010 1:35am
I know this article has been out for several days but does anyone have any insights about it?
I haven't heard anything from brokers yet.


Obama Threatens Forex; Says Goodbye to OTC Gold Trading
  • #2
  • Aug 10, 2010 1:44am Aug 10, 2010 1:44am
would that mean forex is banned from us trading it and commodities?

regards damien
i pull the trigger when others are fearful---me
  • #3
  • Aug 10, 2010 2:19am Aug 10, 2010 2:19am
I dont think forex or commodity trading will be ever banned,billions of revenue is generated from this trading why would they banned it?
  • #4
  • Aug 10, 2010 2:21am Aug 10, 2010 2:21am
Quoting tradestar1
I know this article has been out for several days but does anyone have any insights about it?
I haven't heard anything from brokers yet.


Obama Threatens Forex; Says Goodbye to OTC Gold Trading
funny signature you have,wht does it means?
  • #5
  • Aug 10, 2010 2:25am Aug 10, 2010 2:25am
Quoting Alihuzaifa
funny signature you have,wht does it means?
Catch a man a fish he'll eat for the night, teach a man to fish he will eat for life.
Time hides Nothing
  • #6
  • Aug 10, 2010 3:18am Aug 10, 2010 3:18am
Funny, but as a FX trader, I support this.

I am not a widely successful FX trader, but I manage to stay positive. However, I was NEVER able to get rid of the feeling, that trading FX just isn't right. OK, maybe for us, small fishes, it's a nice way to make some extra money, but WHY on earth wold some bankers, who do nothing else but play with money all day long, get paid with hundreds of millions of dollars for doing... well... nothing? This isn't a productive business. It's full of greed, lies and corruption. And the people who get paid, get paid even if they are making unthinkable losses.

Let's keep it as a game, but ban the speculators from banks and other financial institutions.

On the long run, it has brought us nothing, but trouble, worth of trillions of dollars. This money would be better spent on making sure that everyone would live nicely and exploring the Universe.
  • #7
  • Aug 10, 2010 3:30am Aug 10, 2010 3:30am
Worse case scenario is that the OTC version of Forex will go away and the futures version will survive. I dunno.
  • #8
  • Aug 10, 2010 3:45am Aug 10, 2010 3:45am
Quoting hendrix
Funny, but as a FX trader, I support this.
I'd have to disagree with you on this one Hendrix . The financial markets are the last bastion of capitalism for the average joe. Keep plugging away @ FX.....there is a definite rhythm and rhyme to it, you just have to keep searching.

I don't like the OTC nature of the cash market. If the broker goes bankrupt, you will be screwed out of your money. The FX futures market is more secure in that your funds are not in jeopardy if your brokerage company goes down for whatever reason.
  • #9
  • Aug 10, 2010 3:56am Aug 10, 2010 3:56am
Have the CFTC actually drafted any final rules yet?

I doubt OTC forex, and us as traders in this market, will disappear overnight. There's far too much money involved here for marketmakers to roll over, they'll just devise ways to circumvent the rules and it will be business as usual!

Worst ways, mainstream brokers will open operations offshore just like they did when Rule 2-43 came in!
  • #10
  • Aug 10, 2010 3:57am Aug 10, 2010 3:57am
Quoting hendrix
Funny, but as a FX trader, I support this. (...)
So, the whole service industry should not get a good salary because they do nothing productive?
banking, insurance, consulting, ...?


And by the way, which business is not full of greed, lies and corruption?
software, politics, oil, construction, pharmaceuticals, agriculture,... it's all the same.
..
  • #11
  • Aug 10, 2010 4:00am Aug 10, 2010 4:00am
Quoting hendrix
This isn't a productive business. It's full of greed, lies and corruption.
Money breeds greed, lies and corruption, it always has and it always will. That's capitalism for ya! It's great isn't it, especially when you consider the alternative!
  • #12
  • Aug 10, 2010 4:15am Aug 10, 2010 4:15am
Quoting CindyXXXX
Catch a man a fish he'll eat for the night, teach a man to fish he will eat for life.
Probably not if Obama has anything to do with it, he's likely got a ban on fishing rights planned next!

Hey, fish have rights too ya know!
  • #13
  • Aug 10, 2010 4:41am Aug 10, 2010 4:41am
Quoting hendrix
Funny, but as a FX trader, I support this.

I am not a widely successful FX trader, but I manage to stay positive. However, I was NEVER able to get rid of the feeling, that trading FX just isn't right. OK, maybe for us, small fishes, it's a nice way to make some extra money, but WHY on earth wold some bankers, who do nothing else but play with money all day long, get paid with hundreds of millions of dollars for doing... well... nothing? This isn't a productive business. It's full of greed, lies and corruption. And the people who get paid, get paid...

wow ur in the wrong place..............
  • #14
  • Aug 10, 2010 5:03am Aug 10, 2010 5:03am
I would be more concerned about in the end we're all dead.
Measure twice, cut once
  • #15
  • Edited 1:42pm Aug 10, 2010 12:02pm | Edited 1:42pm
  •  Czech
  • | Joined Feb 2010 | Status: You Don't Know What You Don't Know | 111 Posts
Quoting hendrix
Funny, but as a FX trader, I support this.

I am not a widely successful FX trader, but I manage to stay positive. However, I was NEVER able to get rid of the feeling, that trading FX just isn't right. OK, maybe for us, small fishes, it's a nice way to make some extra money, but WHY on earth wold some bankers, who do nothing else but play with money all day long, get paid with hundreds of millions of dollars for doing... well... nothing? This isn't a productive business. It's full of greed, lies and corruption. And the people who get paid, get...
[redacted] The banks will never stop trading because they have billions to lobby with and they provide liquidity to utilitarian traders.

While you being unsuccessful is a drain on society (if you didn't have a day job). Think about the successful retail forex traders pumping big money back into their local communities.
  • #16
  • Aug 10, 2010 1:16pm Aug 10, 2010 1:16pm
Quoting Czech

This bill bans RETAIL forex
Does it?

As far as I can see the CFTC haven't drafted any rules as yet, unless I've missed a page?
  • #17
  • Edited 2:01pm Aug 10, 2010 1:27pm | Edited 2:01pm
  •  Czech
  • | Joined Feb 2010 | Status: You Don't Know What You Don't Know | 111 Posts
Quoting pipmutt
Does it?

As far as I can see the CFTC haven't drafted any rules as yet, unless I've missed a page?
That assumption came off of
Quote
…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…
which i seem to have misread :-p.
that makes me feel better tho. As long as we're being grouped with the banks i think we're safe for the reasons i mentioned. Thanks for pointing that out pipmutt


edit: According to the wiki on foreign exchange (bare with me) US banks make up about 20% of the worldwide market. Ever since we've had floating rates in the 70's banks have been trading on them (assumption). What will happen to the overall volatility when 20% of liquidity disappears?

my guess is there will be some provisioning
Quote
This provision will not come into effect, however, if the CFTC or another eligible federal body issues guidelines relating to the regulation of foreign currency within 90 days of its enactment.
So the future is uncertain!
  • #18
  • Aug 10, 2010 3:36pm Aug 10, 2010 3:36pm
Quoting Czech

So the future is uncertain!
I reckon!

It's like all these politically motivated noises, they act first to try and inpress/placate voters and then think about the practicalities and consequences later (usually after everything goes wrong!).

I can't see the likes of Interactive Brokërs, FXCM, GFT, Oanda etc etc etc just closing up shop, they're quite resourceful when they have a mind to be!

The UK government did a similar thing a while back with gaming. A big percentage of casino operations went offshore and took their tax pounds with them. The government, realising their mistake, then spent the next few years offering them all tax concessions to try and entice them back!

Governments need scapegoats, seems Wall St and speculators in general are today's excuse for everyone's lot in life! Weak dollar? Speculators! Strong dollar? Speculators! High oil prices? It's those darned pesky speculators again! Global warming's probably our fault too....
  • #19
  • Last Post: Aug 10, 2010 7:10pm Aug 10, 2010 7:10pm
"greed, lies and corruption"

I thought government was full of that...its a little rich to accuse the banks and to an indirect extent us of it.

Now if you'll excuse me I have some money to make in greedy, dishonest and corrupt ways. *Opens up mt4
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