New law posted by Phoenix

[minichaser]

All gold and silver and FOREIGN CURRENCY Over the counter transactions will be illegal if you are not qualified as an investor as of July 15th 2011

Note: The definition of an Over the Counter Forex transaction is the buying or selling of a large amount of physical currency at a bank or currency dealer.

Small travel related currency transactions are exempt and not seen as an OTC Forex transaction and will be allowed.


From: FOREX.com <info@forex.com>
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx


Important 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.com


This also applies to most retail OTC forex transactions - that is trading in different currencies:

Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC forex transactions. Section 742© of the Act states as follows:

…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…

This provision will not come into effect, however, if the CFTC or another eligible federal body issues guidelines relating to the regulation of foreign currency within 90 days of its enactment. Registrants and the public are currently being encouraged by the CFTC to provide insight into how the Act should be enforced. See CFTC Rulemakings regarding OTC Derivatives located at the following website address, under Section XX – Foreign Currency (Retail Off Exchange). It is essential that OTC forex participants seek professional help to discuss possible operational and regulatory contingency plans

NOTE: None of this applies to "Qualified Eligible Participants".

What is that? There is a new definition that defines it as:

Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;

2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or

3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

What this essentially means is that all current positions will be liquidated. For any new positions, you will have to prove yourself to be a qualified eligible participant. Or, rather, get permission to buy and sell. This will result in two things:

1) Easier tracking of those who buy and sell in these areas.
2) Squeezing out the little guy



This means that AFTER July 15th unless you qualify as a "Qualified Eligible Participant"

It will be against the law for you to exchange Iraqi Dinar at a bank in a large amount.

The exchange of IQD or ANY foreign currency for USD at a bank or currency dealer is an Over The Counter (OTC) Forex exchange

and will be against the law unless you are a QEP (Qualified Eligible Participant)

What does it take to be a QEP?

A QEP definition:




Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;

2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or

3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.


So if you do not fit the above definition as a QEP it will be against the law for you to exchange Iraqi Dinar or any other foreign currency in a large amout at a bank or with a currency exchange as of July 15th 2011.



So if the RV were to not happen until after July 15th.....most here may be screwed.

Thanks to the US congress.

Link: http://thomas.loc.go...?c111:H.R.4173:

Phoenix


Read more: http://*********.com/forums/index.php?/topic/71203-after-july-15th-it-will-be-illegal-to-exchange-the-iraqi-dinar-in-the-us/#ixzz1Pm09AKPE

[minichaser]

Im not sure what this means but sounds to me like if we dont get cashed in before July 15 we might have a hard time cashing in after that

[shela1153]

As I understand this law it has no effect on anyone except those who trade on the forex. It will have no effect on those who buy phyical currency. So if you are not a trader then there are no worries. I on the other hand am SOL! So if this does rv and for those that have decided to hold onto some dinar in hopes that the value will go up when it hits forex they too are SOL. Unless they meet the above criteria, such as they have to have a new worth of 1.000,000 or more be a U.S citizen or have a net income of 200,000 with a spouse in the previous two years or joint income of 300,000 in the previous two years. Anyway that's my take on it, I've made some inquires about this and will let you know what I found out.

An interesting aspect that went unnoticed is that SEC/FINRA brokers (like Citibank, Deutsche, etc) can keep offering retail FOREX trading regardless of these regulations, therefore keeping the 100:1 leverage and become more attractive to FOREX traders than CFTC forex brokers (like FXCM, IBFX, etc).

If Mr. Gensler thinks that making the US FOREX industry uncompetitive is making the American public safer, he is possibly tossing the baby away together with the bath water. Volume will go offshore to other less prohibitive jurisdictions. In Japan the leverage was reduced to 50:1 recently and last month, there are reports of a huge drop in volumes .

[minichaser]

I pulled the original document up and that thing is about 180 pages long describing what every word in it meant, No wonder these congressmen just vote on these things without ever reading it. Like I have said before I'm not the brightest light bulb but I'm getting anyone buying foreign money in bulk other than the amount you can buy to go visit that country. Ill be happy when you can decipher this thing and put it in plain English where I can understand it.

[dbcooper]

There is such a thing as being "grandfathered" in, I think any transactions that take place after that date may be subject to the new laws, but I can't see it affecting the people that have purchased Dinar before that date, JMHO. I will talk this over with Will at DinarInc, he will know for sure, stay tuned.

[shela1153]

I believe the new laws affect currency traders and brokers. I don't believe it affects someone who buys hard currency, but I could be wrong. Now I sound like E lol

[minichaser]

You go girl lol

[armondtoth]

I have been told this new law will not happen as it puts Unnecessary Burden on many companies which would force a lot of businesses to close their doors. There is a part of the U.S constitution that prohibits government from placing excessive burden on businesses.

[shela1153]

when did that ever stop the U.S. Government?

[shela1153]

Strange I just got an email from Citi Bank asking me to open a trading account with them. Seems they aren't concerned about the Dodd/Frank thing at all.