Good Evening, Robdel and Family!
I was sent a copy of the complete ruling, which is an addendum to the Dodd-Frank regulations. The wording in this article has caused a lot of confusion for for lots of people here, and it is important to clarify this.
The phrase which occurs throughout this entire document -- actually more times than I can count -- is "retail forex transactions." Family, this piece of legislation was written for banks that want to begin engaging in retail forex trading (read that, "electronic trading") -- NOT the exchange of IQD/IQN or VND or any other hard currency.
Let me see if I can explain this another way. As a customer of Wells Fargo, I can go online and transfer funds between accounts. I can even go online from my office (I don't have to go to the bank in person to do this) to wire transfer monies from my bank accounts to other non-WF bank accounts.
Read More Link On Right
Retail forex trading -- once enabled with WF -- would give me the ability to trade in foreign currency exchanges online in the same way from my home or office.
The objective of this legislation is to enable banks to offer the same kind of online trading you can do with E-Trade, Charles Schwab, and other online investment firms.
This is an expansion into a realm that banks have not generally had access to in the past. It creates another revenue stream for them not previously available.
The way this legislation is currently written and worded says nothing whatever about walking into WF, BofA, Chase or any other bank and having limits on your exchange of Dinars or Dong or any other currency and/or moving unlimited amounts of that currency between different banks.
This legislation not only enables the banks to engage in forex trading with their customers, but sets specific parameters on what the banks can do, and it provides protection for customers of the banks in much the same way that FDIC insurance provides specific protection over monies on deposit in various accounts.
Hope this helps to clear up some confusion and concerns on your part.
Blessings on you. Eagle1
Robdel wrote on April 23rd, 2013, 9:18 pm:Press Release Release Date: April 4, 2013
For immediate release
The Federal Reserve Board on Thursday announced the finalization of standards for banking organizations regulated by the Federal Reserve that engage in certain types of foreign exchange transactions with retail customers.
The rule, issued pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, establishes requirements for risk disclosures to customers, recordkeeping, business conduct, and documentation for retail foreign exchange transactions.
Regulated institutions engaging in such transactions will be required to notify the Federal Reserve and to be well capitalized. They will also be required to collect margin for retail foreign exchange transactions.
The types of transactions covered by the rule include foreign exchange transactions that are futures or options on futures, over-the-counter options on foreign currency, and so-called rolling spot transactions.
The rule covers entities regulated by the Federal Reserve including state-chartered banks that are members of the Federal Reserve System, bank and savings and loan holding companies, Edge Act and agreement corporations, and uninsured, state-licensed branches and agencies of foreign banks.
The Federal Reserve consulted with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation in developing the rule. The agencies have engaged in separate rulemakings as specified by Dodd-Frank.
The rule will be effective on May 13, 2013
Family is this article saying they are required to charge a spread?