FDIC Seeks Comment on Rule Governing Retail Forex Transactions

Hello everyone,

I would like all forex traders especially forex traders from the usa to give their comments on the recent remarks by the FDIC.
I found about this on another forum and I did not see anything mentioned about it here on this forum. I suggest everyone read the exact article here http://www.bloomberg.com/news/2011-0...nsactions.html.

Regards,
Jeff

Hello everyone,

Here is a link to the official posting. http://www.fdic.gov/news/board/11May10no6.pdf


Regards,
Jeff

Hello everyone,

For the forex traders in the usa if you want the FDIC to know your comments then send your comments to the FDIC at [email protected] and Include “Retail Foreign Exchange Transactions” in the subject line of the message. Your comments have to get to the FDIC within 30 days after date of publication.

Regards,
Jeff

Hopefully some of our informed members will respectfully communicate their positions on this issue. We can't afford to sleep through this one...

I could not agree more.

Regards,
Jeff

Here's my favorite line:

“These are retail customers who don’t meet a sophisticated investor standard,”


Now if the FDIC would be so kind enough as to define "sophisticated investor".

Fucking pricks.

While I really am annoyed at more government intervention in US retail forex....

this Rule specifically targets BANKS.


"The FDIC is proposing regulations that would impose requirements for foreign currency futures, options on futures, and options that an insured depository institution supervised by the Federal Deposit Insurance Corporation engages in with retail customers. "

The margin requirements proposed for non-business "retail" customers of BANK transactions...
are exactly what have been imposed upon us last year by the CFTC/NFA.

Basically, if you are an FDIC insured institution dealing with "little guy" transactions in foreign currency futures, options on futures, or options; they must put up appropriate margin.

Business transactions or "sophisticated investor" transactions are excluded.

There is nothing here that will affect US retail forex broker transactions.
(with the small exception of CitiFX, as they are FDIC guaranteed)
Our margin requirements were already changed last year.

Intu,

Thanks for clearing this up. I guess I got a little carried away because this is the same type of verbiage that was used when they restricted leverage down to 50:1.

Their insinuations always seems to imply that we "common folk" are incapable of functionality at the same level as these so called "savvy investors" (aka - hedge fund babies with a shit load of inheritance money which they never earned in the first place).

HANG 'EM HIGH

Call me a conspiracy theorist, but I feel that these institutions fear capital flight away from the US dollar, by US households.

Clearly, the institutions do not really aim to "protect us from ourselves".

IMHO the writing is on the wall. americans need to start looking at going offshore in serious ways. i've already done some preliminary work so i could trade CFDs, i'm planning on getting more serious as the crackdown gets more serious. i'm looking into setting up an offshore corporation and bank account to ensure my trading can be done under the best available conditions.

I hear you on that sentiment.

I especially thought that was absurdly arrogant and even rude, to me personally. Just because I'm under $10m, does not make me any less sophisticated than any nut case who thought the idea of Credit Default Swaps was a good idea that needed no regulation at all!

What bunch of arrogant idiots.

I'll put my technical trading system up against anybody on the Street today - the so-called "sophisticated" traders whom the FDIC deems as worthy of trading currency options. Just because I'm under $10m today, does not meant that I'll be under $10m tomorrow. I've put a combined total of 9 years worth of research into optimizing my trading technology (system) and I can trade on a level that outperforms any Hedge Fund to date, or any Floor Trader on any exchange. To be called "unsophisticated," merely because of the balance of my current account, is a hilarious demonstration of precisely why these people have no darn business being regulators! They act like a a bunch of clueless morons.

And, who plucked this stupid $10m figure from thin air?

Frank/Dodd, was not supposed to impact any "institutional or commercial accounts." What Barclays considers "institutional or commercial," will differ from what FXAll (as just one example) considers "institutional or commercial." You mean to tell me that I can trade in a Barclays BARX "commercial account," that happens to be below some plucked from air $10m number, and because of that, I'm subject to getting my business impacted by these Federal Government nut cases? That's completely unacceptable - I'm not going through this bull crap.

This issue was supposed to have been settled! Why is there a need for an FDIC "comment" on something that was supposed to have been made law already? Or, is this something new? It cannot be new, because the FDIC references the new Frank/Dodd Finreg. And, there is only one issue out of the new Finreg that deals with FX trading.

It is not clear to me what this FDIC notice is all about.

Unsophisticated? They can kiss my unsophisticated %$@%$#@!