The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

FX news: CFTC retail rules bedding down but anomalies exist

There will continue to be fallout from the CFTC’s new regulations for retail FX but the big players are taking the regulations in good grace and, I imagine, some relief that the mooted curtailment of leverage to 10:1 was not imposed.

In fact Drew Niv, CEO of FXCM, is even talking up the merits of the reduction to 50:1. “We believe that the reduction in leverage is a reasonable compromise from the initial CFTC proposal of 10:1 leverage,” he says. “FXCM does believe lower leverage will be to the benefit of traders as higher leverage can often times result in a few losing trades offsetting many winning trades.” This might make one wonder why FXCM hadn’t previously limited leverage to that extent, as had Oanda.

As regards the split between major and exotic pairs, it looks as if this will continue to be ascertained by reference to Section 12 of the NFA’s Financial Requirements: currency pairs composed of USD, GBP, CHF, CAD, JPY, EUR, AUD, NZD, SEK, NOK or DKK are major and all others exotic. A rule has to be determined somehow but it appears that it will be some time before the CFTC’s suggestion, that the designation of which currency pairs are major should be adjusted by the NFA “in light of such factors as changes in volatility” will be implemented.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree