FXCM, just like all US forex brokers, has issued a statement to its clients with regards to the new CFTC proposals. FXCM, just like all the members of the FXDC coalition, feels that such drastic measures will eventually cause plenty of damage to US retail forex traders and the industry as a whole. While FXCM understands that increased regulation and transparency are very important to make this industry as healthy as possible, the measures introduced by CFTC are not an adequate response to that.
Dear Client:
In early January, the Commodity Futures Trading Commission (CFTC)—the U.S. government agency responsible for the regulation of retail foreign exchange—proposed new rules for off-exchange retail foreign exchange. If enacted in their current form, these rules would have an enormous impact on the U.S. forex industry. The proposed rules call for restricting leverage to 10-to-1, even for the most widely traded currency pairs. To read the full 193 page text of the proposed rules, please visit http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/forexrulesproposal.pdf.
While FXCM believes that increased regulation brings credibility to our growing industry, we feel that imposing onerous regulations is counterproductive in the marketplace. FXCM is actively lobbying against restricting leverage to 10-to-1. We are working with other Forex Dealer Members (FDMs), as part of the Foreign Exchange Dealers Coalition (FXDC), to provide a united industry front to lobby congress and the CFTC.
PLEASE NOTE: We are in a critical sixty-day period during which the CFTC will accept comments from the public, including industry participants, on proposed rule changes. If you would like to voice your concern for or against the proposal, you can contact the CFTC directly by sending an e-mail to secretary@cftc.gov with “Regulation of Retail Forex” in the subject line.
The CFTC is required to publish comments on the proposed rules and has the power, although not required, to change the proposed rules based on the comments received. For more information, please e-mail FXCM’s Director of Governmental Affairs, Charlie Delano, at cdelano@fxcm.com.
FXCM is a global forex firm with regulated entities in multiple countries. FXCM clients have the option, at any time, to open accounts with any one of FXCM’s regulated entities, including, FXCM UK, FXCM Asia, or FXCM Australia. These entities provide flexible leverage levels and are not impacted by CFTC rules. For information about FXCM regulated entities outside the United States, please contact your RB account representative, or Cathy Chang at cchang@fxcm.com.
Best regards,
FXCM
