After the financial crisis of 2008, all eyes around the trading world came to focus on one place: Washington DC. And after almost two years of regulatory uncertainty and proposals from Capitol Hill and the Commodity Futures Trading Commission (CFTC), Washington finally could be ready to pull the trigger on derivatives regulation. The Foreign Exchange Dealers Coalition, a group of the nine largest forex firms in the industry, says limiting leverage would drive the industry into the hands of foreign competitors, resulting in job and revenue losses in the multi-billion dollar US forex industry, along with widespread fraud. Efforts to reform OTC derivatives regulation will have an impact on traders as well. There are two additional proposals that many in the industry say are long shots for passage, the Volcker rule and efforts to end 60/40 tax treatment for traders. Regardless of when regulatory reform happens or what form it takes, experts agree that traders should be prepared.
Traders' view of the world: Will DC rock the trading universe? Christine Birkner Futures; Apr 2010; 39, 4; Docstoc pg. 5
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