CFTC rap - why you wanna babysit me?

Great post/video !! I love it !
An all time trading classic !!

" You should also read the lyrics to the song, CFTC (Babysit Me), courtesy of John Lothian. Lyrical excellence is bolded: "



"Yeah...yeah man. This right here? This is dedicated to the CFTC. The Commodities and Futures Trading
Commission Man. Some real FOREX traders. All risk,no reason. Let's go baby...

[REFRAIN]
C F T C
Why ya wanna babysit me?
Uh oh O-oh
[REFRAIN]

I'll take down and begun they taught me leverage 10:1. Now you don't make a living for me how you make decisions for me?
Weather the storm, thunder to come, used to leverage 200:1.
They prayin for my self destruction, God and friend I smell corruption.
It's digusting. Old scam.
Fraud? Look, I'm a grown man with my own plan. Don't babysit. Proposal makes a baby.
I need some room to make me rich. The 50:1 you make me quit.
You're hiding behind consumer protection. Kicked us out, you move the direction.
Shift the markets get your profits - that is hell and reach for profits.
How you gonna tell me how to invest? Obama please get me outta this mess.
Now I'm stressed. This one's for ages. The bill is 2,200 pages.
Makes me want to get a lawyer - I've got a question for ya.

[REFRAIN]
C F T C
Why ya wanna babysit me?
Uh oh O-oh
[REFRAIN]

I see Big Brother is watching my every move like my mother.
I'm going under fast. Who controls it makes me wonder.
Who's the consume that consumer? I can't move I'm the loser.
Dodd and Frank abuses changed the eyes. No more rumors.
Leverage is 50:1. Even 20 or some.
Now my money is done. 9-to-5 here I come.
It makes me want to cry out. They're trying to fry my account. This world is crazy. Why they always push the little guys out?
This big the government. Keep us for they loving it.
Tell you more I love my p*ss. I'm mad a trader forward this.
Hate my job I'm bored with this cus I could go so long with this.
Take my profits and all the chips. We've got a new song for this.

[REFRAIN]
C F T C
Why ya wanna babysit me?
Uh oh O-oh
[REFRAIN]

CFTC wanted to be the hand that rocks the cradle. You know what I mean? "



Read more: http://www.businessinsider.com/cftc-...#ixzz10aGJyjLo

Is this a first for Forex Factory? A Google search for "cftc babysit me lyrics" yields FF in the #1 position. Pretty cool.

!

from IBFX:
"As you may have heard, the US regulatory body Commodity Futures Trade Commission (CFTC) reduced the maximum leverage available for forex traders to 50:1 (2% margin). This regulation applies to all US forex brokers, and goes into effect October 17, 2010. We want you to be aware of how this may affect your account.
On October 17, 2010, accounts with leverage higher than 50:1 will be reduced to 50:1. Please be aware that this change in leverage will immediately double the amount of margin required to hold any open positions; and if there is insufficient margin in the account, a margin call liquidation will be initiated. As a general rule, traders with a margin level of 200% or less before the leverage update will be at risk of margin call liquidation.
Need to deposit funds to prevent a potential margin call liquidation? Take advantage of our 10% deposit match promotion! Terms and conditions apply.
In addition, margin call warning and liquidation levels will update to 125% for margin call warnings (the level at which new trades cannot be placed) and 100% for margin call liquidation (up from the current levels of 100% and 50% respectively).
Starting October 8, 2010, traders will not be able to place new trades on the USD/ZAR and USD/SGD; and will have until 12:00pm MT, October 15, 2010, to close any open positions on these two currency pairs."


So.... you will no longer be able to trade those 2 pairs and it doesn't say which pairs my babysitter will allow me to trade with 20:1 margin and exactly which pairs I can trade @ 50:1 (if I'm a good boy).

From MBTrading:
Dear Valued Client, http://www.mbtrading.com/mbt/_common/images/spacer.gif The CFTC has recently released new rules that go into effect October 18, 2010. Included in these new rules is an increased margin requirement from 100:1 to 50:1 for the major Forex currency pairs. Clients who are highly leveraged may need to take action ahead of the start of trading on October 17 (5:00 PM EST) to prevent margin selling in their account. This affects our Desktop and MetaTrader 4 accounts equally. http://www.mbtrading.com/mbt/_common/images/spacer.gif For a complete overview of the CFTC’s newly adopted rules and what these changes will mean to you, please visit: FOREX CFTC RULING. http://www.mbtrading.com/mbt/_common/images/spacer.gif This new margin requirement will affect all existing positions as well as all new pending orders on the effective date. Please note that the changes will have no impact on spreads, execution, or commissions. Swap rate charges will DECREASE slightly, as less money is being borrowed to place a trade. http://www.mbtrading.com/mbt/_common/images/spacer.gif If your current account margin is greater than 50:1 please consider what actions you will take to meet the new margin requirements when the rule goes into effect. If you wish to make an additional deposit to address the new margin rules or to maintain your current trading size, please visit FOREX Deposits for funding instructions. You can also contact customer support at 866-628-3001 if you need help calculating how these changes will affect your existing positions before the deadline. Partial positions will be liquidated in any accounts exceeding the 50:1 margin requirement when the rules go into effect to bring the account into compliance. http://www.mbtrading.com/mbt/_common/images/spacer.gif All live GTC orders which would cause your account to exceed the new 50:1 margin rule on October 17th will be rejected in their entirety. Please reduce the size of these trades or cancel them accordingly. Our systems will go live with these changes one day early, on Sunday, October 17."

Still nothing concrete as to what my babysitter will consider as "major" pairs and what I might be allowed to trade at 20:1.

There could be many changes....


“Even US customers trading OTC retail forex through a US bank or broker-dealer could be affected by the Dodd-Frank Act. Section 742 provides that if the otherwise regulated “enumerated counterparties” to retail forex OTC transactions (i.e., FCMs, broker-dealers, US financial institutions) has a federal regulatory agency, the agency must issue rules governing OTC retail forex transactions by mid-2011. If the Federal regulatory agency does not issue forex rules, then the counterparty may be prohibited from entering into those OTC retail forex futures transactions. To date, the CFTC is the only federal regulatory agency to issue rules for retail forex. Which becomes effective October 18, 2010. Therefore, unless other federal regulatory agencies act, the impact of this language could be that only FCMs could engage in OTC retail forex futures transactions after mid-2011.” etc. Source; Futures Magazine (emphasis mine)

This whole deal is a joke, Cftc don't give a dam about the small trader.
I am still waiting for a call back from them a month and a half ago.

The first time I ever contacted a Federal agency it took a year to the month to receive a reply (the reply was to contact my State agency).

The second (and last time) I contacted a Federal agency it "only" took 3 to 4 months to receive a reply. A vast improvement...... I guess.

I don't contact Federal agencies anymore.

Best of luck !!

It's not babysitting, they just don't want you in the system if you're not elite.

Someone in another thread not related at all mentioned too much leverage in the system and it needs to unwind.
Remember the superbowl a few years ago, was all stock trading advertisments? What was the gov'ts problem? Too much volume and daytraders? How did they fix it? Kicked most people out.

Difference is, forex is supposed to be international. this is a joke.

You know what's more helpful than contacting the gov't to wait a year or so? Calling them and getting no answer there.

I think the idea behind the reduction in leverage is so that if some lucky FX customer bets against the house and wins, it wont BK the casino.

"Obama please get me outta this mess"

Last time I checked Obama is a Democrat. Dodd and Frank are Dems too right?

Don't get me wrong but I don't like government limiting small traders as the U.S. is built for dreams to flourish. Additionally the switch for accounts to get sent back here in the U.S. in two weeks is the knife in the coffin. Well, maybe 1:1 would be the knife or no retail trading at all.

In sorta related note, there was a push by the CFTC to get the COT report unpublished back in 2006. Thank goodness for our Obi-Wan Jedi traders, Briese and Larry Williams, to stop it from happening.
http://www.allbusiness.com/banking-finance/financial-markets-investing-securities/10546069-1.html
It's not like the COT report gives entries and exits, we still need to process the data, interpret it, combine with tech analysis, etc. Good grief.

Great rap for the most part though, sorry to get a little off topic.

Bingo. Hear Japan's bank complain that the market moves too much and they can't figure it out?
The exchange rate is to be set by whoever those dems appoint in the central bank. Not the "little guy" or unconnected hedge fund employees unless they happen to be the daughter of a former president.

BUMP !!