Expanding Forex Enforcement

Law360, New York (March 22, 2011, 12:58 PM EDT) -- In October 2010, the Commodity Futures Trading Commission enacted the first of its new regulations implementing certain provisions of the Dodd-Frank Wall Street Reform Act governing over-the-counter foreign currency markets (“forex”).

These regulations create new categories of regulated market participants and broadly require that, subject to certain limited exemptions, all entities that either solicit, or act as counterparties to, off-exchange retail forex transactions[1] must register with the CFTC.

Based on its first efforts to enforce these new regulations, it appears that the CFTC interprets the scope...
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