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CHF Crisis Causes NFA to Considering New Regs
Nothing is off the table.
Nothing is off the table.
According to Bloomberg.com, the NFA is considering new regulations.
FXCM's need for a $300 million loan to keep itself afloat in the wake of the CHF crisis has gotten the NFA's attention. Because of this, the NFA is currently considering rules to further protect investors and brokers. Bloomberg quotes Karen Wuertz of the NFA as saying "We’re going to look at everything. Nothing is off the table."
For retail forex traders, this could easily result in a deep reduction of available leverage. In 2010, the CFTC proposed reducing leverage for forex trading all the way down to 10:1. Most brokers and retail investors complained this was too tight and would squeeze the life out of the forex industry in the USA. Eventually, the limit was set at 50:1.
What are we looking at now? 20:1? 10:1? 2:1? At this point, anything could happen. As the NFA says, Nothing is off the table.
If you find any new information about forex regulatory changes from the NFA or CFTC, please post updates in this thread.
Bloomberg story on NFA's consideration of new regulations
Article at the FPA about CFTC 10:1 leverage proposal