Submits Comments to CFTC on Proposed Retail Forex Regulations 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.”