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

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