http://www.reuters.com/article/2011/11/29/us-financial-cftc-meeting-idUSTRE7AS03J20111129 If this rule gets changed, does anyone if the new requirements would apply immediately to FCM's?
It all depends on what the CFTC decides on what the "effective date" of implementation is, it could be effective immediately once they get the votes needed or maybe at the start of the new yr, etc. After the fiasco that MF Global caused by using client funds I would bet the farm that it will be implemented immediately. The day after news broke out about the MF Global scandal, I got hit with a swarm of calls and emails from frantic clients wondering if their futures broker could do the same to them. Passing this law won't guarantee absolute compliance from irresponsible brokers, but no doubt they will think twice about touching client funds for their own speculative use.
But the change would mean substantially less leverage available to all FCM's who trade in-house, right?
it was great having us around if you could use our money,now that you can't,charge more on commish,need to make it up somewhere
Info on a live broadcast of the CFTC meeting on this issue Monday: http://www.cftc.gov/PressRoom/PressReleases/pr6148-11
Because commissions don't pay the bills for these business models. They are too low compared to the average frequency trading. Same is true with discount brokers. Almost all have rather obvious alternative sources of big income. Many financial business models are a lot different than the retail business. Volume is not profit in the finance world. That is part of the reason that we got into the mess we are in. Another reason is that there is no check on government by the voters.
as I'm concerned all the rules/regulations changes in the world don't mean squat All US futures/fx brokers Must be required to provide insurance on client funds insured: EU â¬20,000 . UK £50,000 . Canada C$1,000,000 . US $0