MB Trading's statement re new CFTC rules

by Michael Greenberg
    MB Trading's statement re new CFTC rules
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    Following the new CFTC rules MB Trading issued the following statement to its clients:

    Dear Valued Client,

    The CFTC has recently released new rules that go into effect October 18, 2010. Included in these new rules is an increased margin requirement from 100:1 to 50:1 for the major Forex currency pairs. Clients who are highly leveraged may need to take action ahead of the start of trading on October 17 (5:00 PM EST) to prevent margin selling in their account. This affects our Desktop and MetaTrader 4 accounts equally.

    For a complete overview of the CFTC’s newly adopted rules and what these changes will mean to you, please visit: FOREX CFTC RULING.

    This new margin requirement will affect all existing positions as well as all new pending orders on the effective date. Please note that the changes will have no impact on spreads, Execution , or commissions. Swap rate charges will DECREASE slightly, as less money is being borrowed to place a trade.

    If your current account margin is greater than 50:1 please consider what actions you will take to meet the new margin requirements when the rule goes into effect. If you wish to make an additional deposit to address the new margin rules or to maintain your current trading size, please visit FOREX Deposits for funding instructions. You can also contact customer support at 866-628-3001 if you need help calculating how these changes will affect your existing positions before the deadline. Partial positions will be liquidated in any accounts exceeding the 50:1 margin requirement when the rules go into effect to bring the account into compliance.

    All live GTC orders which would cause your account to exceed the new 50:1 margin rule on October 17th will be rejected in their entirety. Please reduce the size of these trades or cancel them accordingly. Our systems will go live with these changes one day early, on Sunday, October 17.

    You may also visit the CFTC website for their documents on the new requirements and policy: CFTC Factsheet PDF.

    Best Regards,

    MB Trading Futures

    MB Trading: FINRA/SIPC Member

    MB Trading Futures, Inc.: NFA Member

    1926 E. Maple Avenue

    El Segundo, CA. 90245

    www.mbtrading.com

    Following the new CFTC rules MB Trading issued the following statement to its clients:

    Dear Valued Client,

    The CFTC has recently released new rules that go into effect October 18, 2010. Included in these new rules is an increased margin requirement from 100:1 to 50:1 for the major Forex currency pairs. Clients who are highly leveraged may need to take action ahead of the start of trading on October 17 (5:00 PM EST) to prevent margin selling in their account. This affects our Desktop and MetaTrader 4 accounts equally.

    For a complete overview of the CFTC’s newly adopted rules and what these changes will mean to you, please visit: FOREX CFTC RULING.

    This new margin requirement will affect all existing positions as well as all new pending orders on the effective date. Please note that the changes will have no impact on spreads, Execution , or commissions. Swap rate charges will DECREASE slightly, as less money is being borrowed to place a trade.

    If your current account margin is greater than 50:1 please consider what actions you will take to meet the new margin requirements when the rule goes into effect. If you wish to make an additional deposit to address the new margin rules or to maintain your current trading size, please visit FOREX Deposits for funding instructions. You can also contact customer support at 866-628-3001 if you need help calculating how these changes will affect your existing positions before the deadline. Partial positions will be liquidated in any accounts exceeding the 50:1 margin requirement when the rules go into effect to bring the account into compliance.

    All live GTC orders which would cause your account to exceed the new 50:1 margin rule on October 17th will be rejected in their entirety. Please reduce the size of these trades or cancel them accordingly. Our systems will go live with these changes one day early, on Sunday, October 17.

    You may also visit the CFTC website for their documents on the new requirements and policy: CFTC Factsheet PDF.

    Best Regards,

    MB Trading Futures

    MB Trading: FINRA/SIPC Member

    MB Trading Futures, Inc.: NFA Member

    1926 E. Maple Avenue

    El Segundo, CA. 90245

    www.mbtrading.com

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