Looking at the support for Big Bank de-leveraging, there is no reason why they wouldn't support de-leveraging of *no political clout* forex brokers SAY BYE BYE to global retail currency trading! http://www.marketwatch.com/story/financial-stability-board-backs-obama-bank-plan-2010-01-23
The deleveraging they talk about is a different thing then what we have at forex. The big banks dont use this kind of leverage in fx anyways if you talk to some institutions, they really do not use leverage for fx. Its for us smaller traders.
I know. But my point is that with the US de-leveraging mega banks (with all the political clout in the world), it is only a matter of time before the EU starts to do the same to their mega banks. The next logical step would be to de-leverage retail currency trading in Europe. I say we have until the end of this year before the shit hits the fan...
There is no way the UK will reduce leverage as all of the US traders will migrate to the Uk based co.'s. This would be a boon tot he UK financial markets and they will not shoot themselves in the foot.