CFTC: More than 5500 comments on leverage full the regulator's inbox

FXstreet.com (Barcelona) - The market has massively reacted to the CFTC proposal rule to limit the leverage in the United States to 10:1 in Forex. Around 5550 letters have been sent to the CFTC official site by brokers and independent traders. Most of the messages are against the rule, Brokers have created the FXDC coalition and the traders, the TradersAlliance group.

Since January 1st, The CFTC has received around 5550 letters from forex players. The week between January 18 and 24 was the most intense with almost 3000 messages, January 21 being the busiest day with almost 1000 comments.

The U.S Commodity Futures Trading Commission has refused to comment on its considerations about the proposed rule to limit leverage in US to 10:1. “The CFTC declined to comment”, according to a CFTC Spokesman, since the proposal is currently out for public comment until March 22.

“Cutting the US market out of FX entirely will significantly impact the rest of the world’s trading as a great deal of liquidity will be wiped out.” said James Bibbings, President and CEO of Turnkey Trading Partners, during the first open discussion about the CFTC proposed rule in FXstreet.com in January 21. He also comments that “Of course we cannot think for the CFTC; we can only anticipate the progression of what’s to come should this bill pass.”

Follow the discussion in the Forum: CFTC to Kill US Retail Forex Market? thread.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS