Forex banned by new federal regulation from trading precious metals.

[Anti Federalist]

New Metals Trading Restrictions

Posted by Lew Rockwell on June 17, 2011 04:36 PM

http://www.lewrockwell.com/blog/lewrw/archives/89868.html

Writes Jason:

Just got a notice in the mail from my Forex broker. Apparently it is illegal to trade currencies against precious metals now. What a good way to show how safe the dollar is.

From Forex.com:

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.

When I got the notice I immediately thought of your blog, so I decided to share the news.

[AGRP]

You cant buy precious metals with dollars? What?

[squarepusher]

wow wtf. Being able to buy spot gold/silver on forex was a reallly cool feature

[Razmear]

The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business.

From:
http://fx-knight.com/smForum/index.php?topic=1290.0

So if you take delivery within 28 days there are no issues with folks buying silver and gold...

[Anti Federalist]

///

[heavenlyboy34]

So, pardon my ignorance, but could one convert dollars to another currency(i.e. Euros or Francs) and then use forex as usual? /curious

[Anti Federalist]

So, pardon my ignorance, but could one convert dollars to another currency(i.e. Euros or Francs) and then use forex as usual? /curious

I'd be lying through my teeth if I told you I knew the answer to that.

Maybe someone who uses Forex can answer, cos' I'm curious too.

[jmag]

This is odd because I use Oanda and though I don't trade the metals I like having the option there, so upon seeing this thread I contacted them and they acknowledged the Dodd-Frank Act but also said they have no information that it is going to affect them. You can trade xau and xag pairs, gold and silver vs other currencies. If they were going to have to shut down those pairs in two or three weeks they would have made announcements I'm sure.

[erowe1]

Does the Dodd-Frank Act actually include this explicitly, or is it something that the executive branch gets from something less specific in the act?

If it is in the act, which was passed a year ago, why hasn't it been publicized before? And why didn't Forex.com tell their customers what they were going to do months ago?

[erowe1]

Here's something disappointing. Only 3 Republicans voted for this, and one of them was Walter Jones.
http://clerk.house.gov/evs/2010/roll413.xml

[EvilEngineer]

Wonder what this will do to Gold Line.

[FSP-Rebel]

Anyone plan on selling off some of their metals before then?