Consider this posting a heads up. I read the full article and it requires a law degree to even to be able opine on the matter. Since this memo came out from FOREX, it apparently warrants a deep concern. Dodd-Frank– the bill that keeps on giving. There are still hundreds of pages of regs yet to be written on this behemoth bill that passed once again in the dark of the night. It is interesting that Gold and Silver seem to be the focus and concern. You might want to check out one of my earlier posts which follows at the bottom of the page.
Zero Hedge
June 18th, 2011
One small step toward Executive Order 6102 part 2, and one giant leap for corruptcongressmankind.
From: FOREX.com <info@forex.com>
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxxImportant Account Notice Re: Metals Trading
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.
We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.
Sincerely,
The Team at FOREX.comIt 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 here at The Intelhub
Dodd Frank Fiasco- now we are on the hook for the derivatives market
Only seven months too late, official Washington is starting to acknowledge flaws in the architecture of the Dodd-Frank law passed last July. Tuesday, for example, Federal Reserve Governor Daniel Tarullo admitted in testimony to the House Committee on Financial Services that by forcing much of the derivatives market through central counterparties, the government would now be creating new too-big-to-fail institutions and new potential sources of systemic financial risk.
More on the Dodd-Frank Bill
Last week, I described how the Dodd-Frank financial “reform” law passed last summer violates constitutional separation-of-powers safeguards by giving unaccountable bureaucrats the power to seize companies and legislate through administrative fiat. But that is not the only way Dodd-Frank violates the Constitution. It also violates property rights and equal-protection guarantees.
For example, it contains racial preferences that were criticized by members of the U.S. Commission on Civil Rights. It “imposes race and gender employment quotas on the financial industry,” noted economist Diana Furchtgott-Roth in the Washington Examiner. Its ”Section 342 states that race and gender employment ratios must be observed by all government agencies that regulate the financial sector, as well as private financial institutions that do business with the government.”
August 12, 2011 at 11:39 pm
This is yet another step to keep the huddled masses poor and vulnerable to the whims of the affluent by keeping us in dollars, paper and stocks and out of the saftey of precious metals. They know they can’t hide the truth that this ship is sinking
so they will keep us chained to the sinking dollar and have us bail with leakey paper buckets!
LikeLike
June 21, 2011 at 9:13 am
Linked at Infidel Bloggers Alliance and will be linked shortly at my site.
LikeLike
June 21, 2011 at 10:15 am
Thanks super muchly!!
LikeLike
June 21, 2011 at 9:05 am
We have friends in the coin business, and they’re traded gold and silver for decades. These coin dealers will be trading in “numismatic value,” but they’ll get reined in, I think.
LikeLike
June 21, 2011 at 10:14 am
Just the first step-AOW
LikeLike
June 20, 2011 at 11:00 am
People need to pay attention, Bunker. This could very well be a prelude to making it illegal for Americans to own gold or silver. When the dollar does its final swan dive, the government will want to control the only recognized money, i.e., gold and silver.
LikeLike
June 20, 2011 at 2:49 pm
I have that same funny feeling and my thoughts exactly. I would have said it, but then I wasn’t really clear what the whole deal was.
LikeLike
June 19, 2011 at 11:39 pm
one horror after another geez! HAPPY FATHERS DAY my friend!:)
LikeLike
June 20, 2011 at 9:44 am
Same good wishes your way.
LikeLike
June 19, 2011 at 5:33 pm
I looked at the Intelhub article. Dodd-Frank (both who should be in jail) want to eliminate the little guy from investing.
eligible contract participant or an eligible commercial entity
Basically you need to making minimum hundreds of thousands a year to qualify. They pulled something similar several years ago with day trading. It’s not the small investor that screwed things up, yet Dodd-Frank hands control back to the very forces that did.
LikeLike
June 19, 2011 at 8:04 pm
Thanks for the clarity. I thought it looked something like that. Meanwhile, the derivative market remains unchecked, The big guys out for themselves, Surprise.
LikeLike
June 19, 2011 at 1:16 pm
Like ObummerCare, they need to scrap the whole Dodd-Frank monstrosity.
Want to clean up the financial markets? Take the government safety nets out from under them and pass a simple law that makes the principle officers of the bank or investment house personally responsible for what their organization does.
LikeLike
June 19, 2011 at 1:51 pm
Well put. Amazing what simple solutions there are. Whatever this is, it sure is not to benefit us…the little people.
LikeLike