The veto was overridden and the CFTC is now at work implementing the new law passed by Congress. CFTC has just issued a press release touting what the new law does:
CFTC Applauds Enactment of Agency Reauthorization Legislation
Quote:
• Enhances agency authority over off-exchange retail foreign currency fraud by:
1. Clarifying that the CFTC’s anti-fraud authority applies to certain retail off-exchange foreign currency transactions (also known as the “Zelener” fix)
2. Creating a new registration category for retail foreign exchange dealers and requiring registration for those who solicit orders, exercise discretionary trading authority, and operate commodity pools with respect to off-exchange retail foreign currency transactions
3. Imposing minimum capital requirements for futures commission merchants and retail foreign exchange dealers that act as counterparties in such transactions.
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And so it begins. The following firms do not currently meet the upcoming capital requirement increase to $10 million which will take effect 120 days from today:
Advanced Markets $5,100,000
Bacera $5,500,000
Money Garden $6,600,000
Easy Forex $7,200,000
MB Trading $7,700,000
Hotspot $7,700,000
Forex Club $7,900,000
Friedberg Mercantile $8,000,000
CMC $8,300,000
Alpari $8,800,000
Ikon $8,800,000