“Rules to Rein in a Racket”
Statement by Commissioner Bart Chilton on the Release of New Retail Forex Rules
In recent years, mini-Madoff ponzi scams have proliferated, targeting unsuspecting investors with good hearts and limited incomes. Many of these fraudulent schemes have involved “forex” trading, that is, derivatives trading foreign currency. Operating in the shadows of the legitimate forex market, regulators have focused on the types of illegal trading in this area that targets unsuspecting consumers, and bilks them out of millions of dollars annually. New rules will rein in this racket.
Toward that end, the CFTC has worked to craft rules that will protect American investors, and at the same time provide for the operation of legitimate business activity. With these new rules, the agency is ensuring that people investing in forex are protected from fraud and abuse. These rules put the sidelines on the field so that traders know the boundaries and investors can be more assured that their money is not being traded out of bounds.
Last Updated: August 31, 2010
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Cole-Frieman & Mallon LLP is a forex law firm and provides legal support and forex registration services to forex managers. Bart Mallon, Esq. can be reached directly at 415-868-5345.