Francesc Riverola,
Hi everyone
This morning I got an e-mail from InterbankFX telling me that the NFA has clarified their Oct. 18th statement regarding US customers. For this reason, InterbankFX has amended their statement as well. See below ( they have removed 2nd paragraph that stated: “The new rules will impact thousands of U.S. customers with millions of dollars invested in overseas brokers. Beginning October 18, 2010, overseas brokers will no longer be able to service U.S. customers.“).
So… Can US based traders have trading accounts overseas or not?
With the information I have, they still can. But Obama’s bill Dodd-Frank Wall Street Reform Act mandates the CFTC/NFA to issue ruling on Forex within 90 days, and states that: “A person 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.”
We must wait now for CFTC/NFA ruling to know what will happen and when will happen… some have told me that there is going to be a prohibition to go overseas, but it won’t apply till 2011.
I want to thank InterbankFX for helping us to sort this thing out. As soon as I get the official statement of other US Retail Forex Brokers I’ll publish them here.
Francesc
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Interbank FX Supports CFTC Final Rules Regarding Retail Forex Transactions
As many of you are aware, the U.S. Commodity Futures Trading Commission (CFTC) announced today final regulations regarding off-exchange retail foreign currency transactions. These rules are supported by Interbank FX, LLC, in providing an enhanced regulatory environment that will help protect retail forex investors and will also create a level playing field for all rules and regulations within the United States.
Interbank FX has continually supported the original Farm Bill of 2008, allowing the CFTC more authority over forex dealers. Because of this, we’ve foreseen such potential CFTC regulation changes, paving the way for our U.S. entity to be equipped with efficient operations, technology and overall transaction transparency to serve our growing customer base. For over two years, we’ve mandated all US solicitors and Money Managers to be registered with the CFTC and members of the NFA, anticipating the changes in the regulatory framework that have been published today.
In addition, we believe the CFTC has reached a reasonable compromise with the Forex Dealer Coalition (FXDC) regarding leverage requirements–making 50:1 leverage available to all U.S. customers. This compromise on leverage, as opposed to 10:1 in the proposed rules, allows the United States forex community to remain competitive with global opponents.
We consider these rules to be in the best interest of our customers, and incessantly strive to improve industry standards while accommodating customer expectations. That’s how we do business. That’s our culture. That’s our technology.
Interbank FX looks forward to continuing to provide a transparent and open trading environment for all our customers. For more information on our transparency metrics, please view our report card here.
To view the official CFTC release, click here.
Questions and Answers Regarding Final Retail Foreign Exchange Rule, click here.
The IBFX Family
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