Don’t hold your breath.
In an ARTICLE posted today on the [I][B]Finance Magnates[/B][/I] website, Jeff Patterson (writing about GAIN Capital and their agreement to buy FXCM’s client book) concluded his article with this paragraph:
In light of this, the Trump administration has shown a willingness to dismantle Dodd-Frank, which could [B]eventually[/B] have major consequences for brokers operating domestically. However, this process will be difficult to undertake logistically, and so [B]it is unlikely to foster any other dramatic shakeups in the FX market in the foreseeable future.[/B]
(I added the bold type for emphasis.)
I have a somewhat different take on the issue of Dodd-Frank, and whether it even matters.
As I have written extensively in this thread, it is my opinion that the Dodd-Frank law is [B]not[/B] the cause of our problems in retail forex.
If the Dodd-Frank law were repealed completely, we would still be stuck with:
• a decimated retail forex industry, in which only 2 significant retail brokers are left standing
• the ongoing efforts of the CFTC to [I]abolish off-exchange retail currency trading[/I] in the U.S.
• the leverage restriction, the FIFO requirement, the hedging prohibition, and
• the ongoing CFTC [I]harassment of offshore brokers who deal with U.S. residents.[/I]
The cause of our current problems, in my opinion, is [I]the out-of-control CFTC,[/I] which is intent on:
• forcing U.S. retail forex trading onto a [I]CFTC- controlled forex exchange,[/I] and
• making it impossible for U.S. residents to access a [I]free market for retail fx trading[/I] offshore.
A model for [I]exchange-traded retail spot forex[/I] already exists in Japan.
If you’re interested, do some research on “Click365”, which is part of the Tokyo Financial Exchange Inc. Click365 is the world’s first [I]margin spot forex exchange.[/I]
The CFTC wants to impose a Japanese-style “margin spot foreign currency exchange” on the U.S.
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