Industry Group Urges CFTC To Change Retail Forex Plan
By Sarah N. Lynch Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)–The self-regulatory group for the futures industry is urging the U.S. Commodity Futures Trading Commission to rethink its controversial proposal to reduce the amount of borrowed funds retail investors can use for trading foreign exchange contracts.
In a letter sent this week to the CFTC, the National Futures Association said the CFTC should “reject a ‘one size fits all’ approach to establishing security deposit requirements.” The NFA’s own rules currently permit leverage of 100 to 1 for major currencies and 25 to 1 for the more exotic variety, but the CFTC is proposing a leverage cap at 10 to 1 for all currencies.
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