THE ISSUE: CFTC Proposed Regulatory Changes
How Will These Changes Hurt the American Economy and the Forex Industry?
Click here to read FXDCs full statement in response to these harmful proposals.
Should the 10 to 1 leverage rule proposed by the CFTC be adopted:
- 90% of the hundreds of thousands of live accounts currently in the U.S. system can be expected to go offshore.
- Thousands of high paying, white collar jobs that require an advanced education and range from software developers to accountants to foreign exchange dealers will be eliminated, or moved out of the United States.
- The United States will cost itself billions of dollars in trade revenue.
- Forex fraud will worsen, not improve.
- Unregulated dealers from around the world will thrive as a result of the 10 to 1 leverage rule. These unregulated forex dealers dont have to worry about capital requirements, risk management models, marketing ethics, dealing practices or even returning a customers funds.
The case against the 10 to 1 leverage rule is clear. The rule will be a boon to foreign forex dealers (both regulated and unregulated), who will grow entirely at the expense of retail forex dealers in the United States. Thousands of high paying jobs will be lost and the potential for tens of thousands of more jobs will forever vanish as well. Consumers will be hurt and more vulnerable to fraud. And the United States will toss away one of the most promising export industries that it has, all in the midst of 10% unemployment.
Click here to send an email to the Secretary of the CFTC, and say no to this harmful legislation.
