New Forex Regulations: Overview of Public Comments

Leverage, Inaccessibility for Smaller Traders, and Offshore Threat are Focus of Public Comments

As we’ve discussed in related posts, the CFTC has proposed rules regulating the off-exchange spot forex industry (see Retail FOREX Registration Regulations Proposed). The CFTC has requested comments from the public and there are currently about 100 public comments on CFTC’s website written in response to the new rule. The comments mainly focus on:

• Leverage reduction rule (approx. 75/100 comments)
• Forex industry becoming inaccessible to smaller traders (approx. 35/100 comments)
• Threat of investors moving their money to offshore firms (approx. 25/100 comments)
• Opposition to government interference/regulation (approx. 20/100 comments)

[Note: over the weekend the CFTC published some of the backlog of comments it received. Much of this article was written prior to review of these extra comments (which total approximately 3,663). We will provide an update on such comments in the future.]

Read the full post here.