San Francisco, CA (PRWEB) March 25, 2010
With the goal of “helping to create a considered regulatory regime that emphasizes both investor protection and the continued economic viability of the domestic retail forex industry,” Mallon P.C. submitted comments on the Commodity Futures Trading Commission (“CFTC”) proposed regulations regarding retail off-exchange foreign currency (“forex”) transactions.
At the beginning of this year, the CFTC proposed regulations which would, among other things, require registration for certain forex market participants, decrease leverage available for forex traders and require forex introducing brokers (“IBs”) to enter into a guarantee agreement with the forex principal/counterparty for which they represent. Mallon P.C. commented on the reasonableness of the registration requirement, discussed its strong opposition to leverage reduction, and expressed dissatisfaction with the guarantee requirement. Mallon P.C. also asked for grandfathering provisions to be considered for current independent forex IBs.
“The comment period is an important part of the regulatory process,” said Bart Mallon, Esq. “Mallon P.C. believes that regulators and market participants should work together to produce considered, reasonable regulations which aim to achieve both investor protection and economic aims.” Mallon P.C.'s comment letter specifically stated that “we agree with many of the Proposed Regulations and believe they serve important investor protection functions, however we are concerned that some of the Proposed Regulations will not protect investors and will have a deleterious effect on the United States forex industry.”
Mallon P.C. provides comprehensive support to forex businesses including forex CPOs, CTAs, IBs, and FCMs. In addition to forex managers, intermediaries, and brokers, Mallon P.C. also provides legal, registration, and compliance support to hedge funds and investment managers throughout the United States. Forex managers who have questions about CFTC registration or questions regarding CFTC and NFA compliance are urged to contact Bart Mallon at 415-868-5345.
The contents of this press release may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome. The full text of the comment letter can be found at http://www.hedgefundlawblog.com.