IBFX NFA rules new implemented ..Leverage FIXED

[Jason_Rogers]

Thanks for sharing their response. I wonder if the CFTC has ever seen a proposal they don’t like

The forex community will be watching intently until then.

Hi, Jason

I wrote back to John Matteson, Staff Auditor at the National Futures Assoc. Compliance Dept., regarding the link you provided.
Here is the reply I received today:

Hi Clint,

I apologize for not being able to find that letter for you. As for the proposed amendment, you are correct that NFA is requesting that Forex leverage be capped off at 100:1, due to the reasons discussed in the letter. However, the amendment is only a proposal by NFA, and the final decision is in the hands of CFTC.

Thanks,

John

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That email was a reply to my request for more information, as follows:

From: Clint_______________________
Sent: Tuesday, June 30, 2009 7:58 PM
To: John Matteson
Subject: Re: Response to NFA Question

Hi, John

Thanks for your prompt reply to my inquiry.

After receiving your email, an associate of mine directed me to this link: http://www.nfa.futures.org/news/PDF/CFTC/FRSec12_intNotc021909.pdf
which seems to confirm what I was hearing, namely that NFA is, in fact, proposing a change to the maximum leverage which can be offered by forex brokers (FDM’s).

I trade spot currencies through Forex Capital Markets LLC (FXCM), in an account having 200:1 leverage. If the proposed rule changes outlined in the link above are approved, as I read the text, FXCM (and all other brokers who presently offer leverage greater than 100:1) will be required to reduce the leverage offered to no more than 100:1.

Am I interpreting this proposed change correctly?

Your reply will be appreciated.

Best regards,

Clint__________

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Jason, thanks again for bringing that February 2009 document to the Forum.

Clint