Just as I reported over a month ago due to Dodd-Frank rules even Swiss forex brokers, which in fact are now banks and thus could continue accepting US clients even after October 2010, will have to stop accepting US retail forex clients. These banks will still be able to accept eligible contract participants (read $1 million and up per CFTC’s definition). Other clients will be offered to continue trading using Dukascopy’s technology – mainly JForex platform – through still undisclosed US brokers who’ll form such a relationship with Dukascopy by July 15th. Knowing how long it takes to negotiate, integrate and establish compliance procedures in such cases you can safely assume that it won’t happen on time.
The following was posted on Dukascopy’s website and sent to clients by email:
Closing of US residents positions
Pursuant to changes in US Forex regulation, US residents who are not eligible contract participants will be invited to transfer their accounts to one of our US partners which will provide Dukascopy Bank’s trading technology and data feed to US clients.
Please note that all positions opened with Dukascopy Bank by non-eligible contract participants must be closed by July 15, 2011 at 18:00 GMT (July 14 at 18:00 GMT for non-USD accounts). Dukascopy Bank only accepts US eligible contract participants as defined in the relevant US regulation
New opportunity to trade via US Brokers / New US white label partners
Pursuant to a change in US regulation, Dukascopy Bank has decided to provide its technology in the USA via US Brokers with effect after 15th of July 2011. To satisfy its clients, Dukascopy Bank is developing partnerships with some of the most famous and reputable US Brokers, in order to allow clients to continue trading with Dukascopy Bank’s technology. By July 15, 2011, all positions opened with Dukascopy Bank by non eligible contract participants must be closed (July 14, for non-USD accounts). An easy transfer solution will allow clients to trade on our technology through one of our US partners after July 15.
US residents who are eligible contract participants (including in particular clients with more than USD 10 million financial assets) may still trade with us after mid-July.
Alain Broyon, CEO of Dukascopy Bank says: ”Due to recent changes in US Forex regulation, Dukascopy Bank was looking for new partnerships with US based brokers so as to serve its clients in conformity with US regulation. Our strategy to provide Dukascopy Bank’s technology via White Label Solutions to onshore licensed brokers is showing its success. This is great news for both Dukascopy Bank and its clients residing in the USA. We expect this cooperation to be very fruitful for all concerned parties”.
Further information will be given on July 1st 2011.