Tax-haven platforms may never get CFTC sanction, so will they be illegal under Dodd-Frank, or, will it be a viable way to navigate around the U.S. forex tradingleverage constraints?
Notice how the CFTC may not allow Americans to get higher leverage offshore with new forex trading rules. (See my past blogs and podcasts.) Could regulators and tax authorities use extraterritorial reach on an FTT too?
If traders are given licence to use leverage to buy into rising asset markets, then the trading division should be charged a cost of capital high enough to reflect the risks involved.
As the fund does not employ leverage or derivatives for risk management, Exante intends to provide a two-way secondary market for the trading of fund shares.