FXPA urges FX exemption from new SEC derivatives rules
FXPA urges FX exemption from new SEC derivatives rules explained by professional Forex trading experts the “FXPA urges FX exemption from new SEC derivatives rules” FX trading team.
FXPA urges FX exemption from new SEC derivatives rules
The Foreign Exchange Professionals Association (FXPA), a Forex trade body that commenced operations in September 2014, today announces that it has submitted comments to the U.S. Securities and Exchange Commission (SEC) regarding proposed rules governing the “Use of Derivatives by Registered Investment Companies and Business Development Companies”.
FXPA is calling for an exemption for FX swaps and forwards from the proposed rules.
The Association defends the view that FX forwards and FX swaps should be exempt from the developing rules on derivatives. The comments argue that introducing this regulation on FX products would be both impractical and self-defeating from a risk mitigation standpoint.
FXPA notes that “Impediments to asset managers’ use of FX derivatives to hedge commercial risk from global investment strategies could reduce asset managers’ abilities to deploy capital around the world, restricting investment strategies, tying asset managers’ systemic stability to US dollar-denominated investments, and could restrict long-term investment capital to businesses around the world”.
FXPA urges FX exemption from new SEC derivatives rules Conclusion
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