You have to keep in mind the fact that CFTC does not have regulative authority only over the spot part of the currency market. However they still do regulate the currencies futures contracts as those are being traded through organized exchanges. Because of that CFTC has a common practice of going after some forex traders and companies by falsely claiming in courts that whatever market operations the accused were involved in have more to do with the futures than with the spot market. Then the exact definition of what is futures and what is spot in such case rather becomes an issue of a judge's consciousness and discretion. But this is only a part of the problem. Even if CFTC eventually loses the case in court, they still can be declared winners because the business of the accused has been effectively bankrupt over the period of the investigation and the following legal arguments.
- | Joined Jul 2006 | Status: Your friendly Daily Pip Nipper. | 399 Posts
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