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Rumors are circulating this week that an article in the Dodd-Frank Act will bar US traders from participating in over-the-counter precious metals trading beginning 15 July 2011. The story began when Forex.com announced to its customers that its precious metals operations would be closing shortly due to regulatory pressure.
The regulation apparently will not affect the trading practices of other countries; it will merely limit the influence the US investment establishment has over the volatile pricing of precious metals like gold, silver, and platinum.
Several lawyers and economists claim that the law in question, Section 742(a) of the Dodd-Frank Act, however, does not in fact prohibit commodity trading in such a way. It merely limits who can participate in the commodity markets. Many analysts are claiming that Forex.com’s maneuver is an overreaction to regulatory pressures and not representative of the international forex brokerage environment.
http://www.forexyard.com/blog/en/201...r-us-investors
Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15
We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.
In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.
We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.
So far we have only received this warning from Forex.com. We are waiting to see which other dealers inform their customers that trading gold and silver over the counter will soon be illegal.
It appears that Forex.com's interpretation of the law stems primarily from Section 742(a) of the Dodd-Frank act which "prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis."
more
http://www.zerohedge.com/article/tra...july-15?page=1
The regulation apparently will not affect the trading practices of other countries; it will merely limit the influence the US investment establishment has over the volatile pricing of precious metals like gold, silver, and platinum.
Several lawyers and economists claim that the law in question, Section 742(a) of the Dodd-Frank Act, however, does not in fact prohibit commodity trading in such a way. It merely limits who can participate in the commodity markets. Many analysts are claiming that Forex.com’s maneuver is an overreaction to regulatory pressures and not representative of the international forex brokerage environment.
http://www.forexyard.com/blog/en/201...r-us-investors
Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15
We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.
In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.
We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.
So far we have only received this warning from Forex.com. We are waiting to see which other dealers inform their customers that trading gold and silver over the counter will soon be illegal.
It appears that Forex.com's interpretation of the law stems primarily from Section 742(a) of the Dodd-Frank act which "prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis."
more
http://www.zerohedge.com/article/tra...july-15?page=1