A Dodd-Frank Wall Street reform law may force some dealers to suspend U.S. retail trading of over-the-counter (OTC) precious metals, The Wall Street Journal reports. The law, which is set to take effect on July 16, will affect big banks, firms as well as retail investors, who buy short-term derivatives contracts to bet on the price movements of gold and silver.
Online dealer Forex.com, owned by GAIN Capital, has discontinued metals trading for U.S. residents and is also closing open metal positions before July 16. The new law will be beneficial for Nadex, a Commodity Futures Trading Commission-regulated open-membership exchange, as it offers smaller futures contracts that are more suitable for retail investors.
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