Proposed NFA Capital Requirement - page 39
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This isn't strange with US and others countries law and sometimes is very good and sometimes not.
One external example is the EU regulations about personal data. A country outside the EU needs to be in agreement with EU regulations to establish a legal e-business, data transfer, provide services, etc.
In my country personal data protection is a lot better than in US, however US companies like Goog or YH does not accept to operate under local law and has been take to court many times.In principle I completely agree with you that local domain is sometimes good sometimes bad. The obvious intent of the law is to make it so retail brokers must submit every trade to the prime broker, which then gouges the market in commissions. The retail broker earns no spread, and needs to charge commission. The only leverage the retail broker can offer is the leverage the prime broker offers. The lot sizes are dictated by the prime broker and they tend to be 5 lot minimum right now. ECNs take a hit, because you need a separate buy and sell account, and the ECNs still rely on the prime brokers for settlement, and the prime broker commissions and the ECN commissions stack. In other words, everybody gives away all of their profits to the prime brokers, nobody trades net, and the leverage/credit you get are entirely dictated by the prime brokers.
I think this qualifies as bad especially since it makes MT4 illegal. MT4 can *only* do net trades. We're trying to hack in Straight Through Processing and it is hard. Even that isn't enough. I'm sure I'll be able to continue trading after the bill passes, but I'm also sure that if the bill passes, leverage and most brokers are gone. The only ones that are left are expensive.
In principle I completely agree with you that local domain is sometimes good sometimes bad. The obvious intent of the law is to make it so retail brokers must submit every trade to the prime broker, which then gouges the market in commissions. The retail broker earns no spread, and needs to charge commission. The only leverage the retail broker can offer is the leverage the prime broker offers. The lot sizes are dictated by the prime broker and they tend to be 5 lot minimum right now. ECNs take a hit, because you need a separate buy and sell account, and the ECNs still rely on the prime brokers for settlement, and the prime broker commissions and the ECN commissions stack. In other words, everybody gives away all of their profits to the prime brokers, nobody trades net, and the leverage/credit you get are entirely dictated by the prime brokers. I think this qualifies as bad especially since it makes MT4 illegal. MT4 can *only* do net trades. We're trying to hack in Straight Through Processing and it is hard. Even that isn't enough. I'm sure I'll be able to continue trading after the bill passes, but I'm also sure that if the bill passes, leverage and most brokers are gone. The only ones that are left are expensive.
This info is great.
I just want too say Metaquotes should pay attention to this and not us. They're very busy with MQL5 and the "color mirrors" when what we really need is more or different features with the platform/server, like fully support to ECN trading or a decent screen. MT4 has become small with the new market conditions and the pressure will keep growing up, at least for the US/Canadian market.
Understand the snips of the post by an obviously biased opinion, see below. MT4 and the other birds of the feather are trying to hang on to what they have.
By making the market more transparent...we will know what our commission is...instead of MT4 hiding it for the dealers and presenting it.
MT4 has never been on our side...the gig is up...
and guess what dealers?...your 100K investment and up in MT4 may now become worthless...and those naughty plug-ins...HA!. MT4 you ought to be ashamed of yourself, you dirty bastid's.
ES
In other words, everybody gives away all of their profits to the prime brokers, nobody trades net, and the leverage/credit you get are entirely dictated by the prime brokers.
I think this qualifies as bad especially since it makes MT4 illegal. MT4 can *only* do net trades.
We're trying to hack in Straight Through Processing and it is hard.
ElectricSavant, how do you plan to bypass the trade execution before MtSrvTradeTransaction in order to fulfill the requirements of 4b(D)(ii)?
Also, please provide a list of STP feed connectors, because the BostonTradeTechnologies doesn't work well and the 2 other connectors both have killer bugs. I've used all 3 in live trading.
I do agree most MT4 brokers should be very ashamed, and Alpari/MetaQuotes made MT4 to do easy price injections. Those price injections now carry a 3xProfit penalty or $10 Million whichever is less.
So what do you think this means to the market? How do you envision the Retail Forex Brokers surviving? Under what business model?
Understand the snips of the post by an obviously biased opinion, see below. MT4 and the other birds of the feather are trying to hang on to what they have.
By making the market more transparent...we will know what our commission is...instead of MT4 hiding it for the dealers and presenting it.
MT4 has never been on our side...the gig is up...
and guess what dealers?...your 100K investment and up in MT4 may now become worthless...and those naughty plug-ins...HA!. MT4 you ought to be ashamed of yourself, you dirty bastid's.
ESIts too strict in my opinion..I think brokers like Oanda, interbankfx would be forced to open subsidiary branches in panama or Switzerland joining up with local company...to serve folks like me who are not in US but trade online
Scooby pointed out in the https://www.mql5.com/en/forum/178664 thread that it may be possible for brokers to legally offer net trades as long as there is explicit permission to not execute trades that are submitted. Those are my words, not his. I recommend checking out his analysis and I hope that more people start reading the law and discussing it.
Bush to Veto Farm Bill Today
President Bush will officially veto the farm bill today per Reuters:
WASHINGTON (Reuters) - President George W. Bush is expected to veto the "bloated" $280 billion farm bill on Wednesday, a White House spokeswoman said.
Spokeswoman Dana Perino said the five-year bill was "bad for American taxpayers." Farm leaders in Congress say they can override the veto and enact the five-year bill as law.Congress may initiate an override vote as early as this evening. We are nearing the end game now.