[5:24:24 PM] brokenwrench: osted Today, 01:44 PM
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
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://dinarvets.com/forums/index.php?/topic/71203-after-july-15th-it-will-be-illegal-to-exchange-the-iraqi-dinar-in-the-us/?s=b07c41ccfe288b7dfec2bf6ddfbbda35#ixzz1Pl8jMB66
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