As many of you are aware, the U.S. Commodity Futures Trading Commission (CFTC) announced today final regulations regarding off-exchange retail foreign currency transactions. These rules are supported by Interbank FX, LLC, in providing an enhanced regulatory environment that will help protect retail forex investors and will also create a level playing field for all rules and regulations within the United States.
Interbank FX has continually supported the original Farm Bill of 2008, allowing the CFTC more authority over forex dealers. Because of this, we’ve foreseen such potential CFTC regulation changes, paving the way for our U.S. entity to be equipped with efficient operations, technology and overall transaction transparency to serve our growing customer base. For over two years, we’ve mandated all US solicitors and Money Managers to be registered with the CFTC and members of the NFA, anticipating the changes in the regulatory framework that have been published today.
In addition, we believe the CFTC has reached a reasonable compromise with the Forex Dealer Coalition (FXDC) regarding leverage requirements--making 50:1 leverage available to all U.S. customers. This compromise on leverage, as opposed to 10:1 in the proposed rules, allows the United States forex community to remain competitive with global opponents.
We consider these rules to be in the best interest of our customers, and incessantly strive to improve industry standards while accommodating customer expectations. That’s how we do business. That’s our culture. That’s our technology.
Interbank FX looks forward to continuing to provide a transparent and open trading environment for all our customers.For more information on our transparency metrics, please view our report card here.
To view the official CFTC release, click here.
Questions and Answers Regarding Final Retail Foreign Exchange Rule, click here.
The IBFX Family