Forex regulation in the United States has been getting tighter and we are seeing more consolidation in that space.
And now, a petition has come online calling to repeal one of the earlier rules regarding the industry, the one preventing hedging via the First In First Out principle.
The NFA’s 2-43(b) rule has been in place for many years, before the leverage limit came into effect by the CFTC. You can see the petition here, and this is a quote from it:
This rule has since prohibited the freedom to utilize beneficial trading resources such as offsetting (commonly referred to as ‘hedging’), as well as the freedom to close each trade, choose take profit, stop loss and trailing stop values for each order without the interference currently caused by the FIFO aspect of the rule. I did not ask for these restrictions and firmly disagree that those freedoms now prohibited ‘were of no benefit to the trader’.
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