SEC Adopts Retail Foreign Exchange Rule in Order to Prevent Dodd-Frank Amendment from Disrupting the Retail Forex Markets

August 05, 2013

The U.S. Securities and Exchange Commission (“SEC”) on July 11, 2013 adopted Rule 15b12-1 (“Final Rule”) under the Securities Exchange Act of 1934 as amended (“Exchange Act”) in order to allow market participants to continue to benefit from accessing the retail foreign exchange (“forex”) markets. In the absence of the Final Rule, an amendment to the Commodity Exchange Act as amended (“CEA”) effected by Section 742 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) would have prevented broker-dealers from entering into or executing retail forex transactions with any person except an “eligible contract participant” (“ECP”).

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