CFTC member calls for tougher retail forex broker oversight

Forex brokers selling products to retail clients should be subject to the same tough rules as operators in derivative markets, a member of the US Commodity Futures Trading Commission said on Wednesday, as the industry faces closer scrutiny from regulators. Sharon Bowen, a Democratic member of the agency that oversees swaps and futures, expressed the view after a sudden jump in the Swiss franc caused heavy losses at retail broker FXCM and the emergency bailout of the firm by a rival.

"I believe the Commodity Futures Trading Commission has an obligation to seriously consider enhancing our regulations of retail foreign exchange dealers," Bowen said.


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