FXDD responds to FOREX Witch Hunt

By now you are probably well aware that NFA has made a new rule that prohibits US Forex Dealer Members from carrying customer accounts with opposing positions in the same account past the end of the trading day ("no -hedging"). The rule also requires all positions to be closed in historical order, otherwise known as 'first in first out' (FIFO). There has been wide speculation among user groups what these changes may bring, how they are going to affect the Metatrader platform, how automated trading scripts are going to be affected (Expert Advisors) and what retail trading is going to look like in the future.
 
The 'No-Hedging' rule has been in effect for over a month now and as many of you can attest most of the statements of "doom and gloom" have been highly exaggerated. The FIFO rule implementation has been extended once already and there is continuous talks amongst all companies, platform vendors (software companies), and NFA as to what will be permitted and how things should be working out. In the midst of these changes some dealers have decided to use the rule changes as a selling point for their offshore service centers. They try to amplify the uncertainty and to play on the customers' fears. It is unclear if they are well equipped to maintain a properly operating MT4 platform in these jurisdictions. Most of them have very little history of operating one. It is certain though that it would be costly and inconvenient to close everything and move an account to an untested firm.
 
In the wake of all this speculation we at FXDD would like to assure you once again that we will do our best to make sure you can continue trading without having to worry about how things may change for you. We are working with the platform vendors, carefully examining all possible options, and working diligently with NFA on the progress of our membership. Our advice is not to make hasty assumptions based on the loose talk from people who spread rumors. If we are to make any further changes to our platforms we will make sure you are informed well in advance and you are given all possible options to consider. We will also try and keep you updated on a regular basis to let you know what our plans are.

Thanks as always for being a FXDD customer.

Sincerely,
The FXDD Team

75 Park Place, 4th Floor, New York, NY 10007
Toll-free in the US: +1-866-367-3933 or +1-212-791-3933.

JPY rises with little media coverage, G8 meeting, China Reserve Currency, Cyberattack hits NYSE

http://seekingalpha.com/article/147668-is-the-floor-caving-under-usd-jpy The 95 price level for USD/JPY has served as very strong support over the past few months and now that the currency pair is trading well below that price level, it appears that the floor is caving in.

http://www.ibtimes.com/articles/20090708/jpy-advances-on-safe-haven-gains.htm JPY Advances on Safe Haven Gains

4cast - FX NOW! USD/JPY, EUR/JPY Flows - JPY surges across the board through stops

Wednesday, July 08, 2009 11:35:00 AM

* 08 Jul 09: 15:35 GMT (NYC) - FX NOW! USD/JPY, EUR/JPY Flows - JPY surges across the board through stops

After the London fixing JPY has surged across the board with what started as a decline in the S&P futures the sent the rate through stops at 93.90 and through even more on the way down to 92.76. The move looks rather painful for the TFX investors who are short JPY. SI

* 08 Jul 09: 15:10 GMT (LDN) - FX NOW! EUR/USD, USD/JPY Flows - EUR sold off at fixing, JPY rallies as equities slide

EUR suffered more than most at the regular 16:00 bst fixing today. Activity has been at a very low level during the entire session and the downtick on EUR/USD and USD/JPY at the fixing is likely to reflect minimal order imbalances. While the EUR was for sale at the fixing, the decline in equities that came at about the same time helped JPY climb, sending USD/JPY down through the 94.00 level, setting off stops at 93.90 and touching lows of 93.75. M.B.

* 08 Jul 09: 14:44 GMT (LDN) - COMMODITIES NOW! OIL Flows - EIA data was mixed, but crude price were already under pressure

Crude inventories dipped and gasoline stocks climbed. The news did little to interrupt the price action in crude oil futures that have been on the way down. Pressure has been exerted by the USD's advance, the weaker prospects for growth implied by the equity market decline and the ongoing G8 and CFTC rhetoric regarding speculative crude oil trading and position limits.

* 08 Jul 09: 14:42 GMT (NYC) - FX NOW! USD/CAD, EUR/CAD Flows - Modest bounce after EIA inventory data

USD/CAD has seen good two-way interest so far in the session, but offers took over in the N.Am morning to push USD/CAD below 1.1600 to lows of 1.1589. However, buyers have found a decent opportunity to retrace losses after the release of EIA inventory data showing a slightly higher than expected draw in crude stocks of 2.9mn barrels (2.4 mn expected) being offset by a larger than expected rise in gasoline inventories (+1.9mn vs 0.6mn expected) and distillates during the key driving season. USD/CAD has bounced through 1.1620 in reaction to a drop in crude futures and equities, but the high of 1.1682 is still a stretch. SI

* 08 Jul 09: 14:24 GMT (LDN) - FX NOW! GBP/USD, EUR/GBP Flows - GBP trading is tentative in advance of Thurs BoE release

GBP trading has lacked its usual price swings that tend to keep speculators busy and dealers attentive. In advance of the close of the BoE meeting on Thursday, with the bank expected to leave official rates unchanged at 0.50%, the only excitement that may be generated in the wake of the meeting is the potential announcement that the BoE's QE program would be expanded from the current total of GBP125 bln up to GBP150 bln. A more aggressive QE program is likely to soften GBP and it seems obvious now that the market is not interested in doing anything until the bank announces its intentions. M.B.

DOTS TO CONNECT:

1. G8 Meeting http://www.reuters.com/article/usDollarRpt/idUSL129307120090701
   China requests reserve currency debate at G8 -sources
   
2. USD collapses against JPY http://www.ibtimes.com/articles/20090708/jpy-advances-on-safe-haven-gains.htm
   
3. Cyberattack of NYSE http://www.washingtonpost.com/wp-dyn/content/story/2009/07/08/ST2009070801296.html
   
   1. http://www.thestreet.com/story/10537620/1/report-cyber-attack-hit-nyse-white-house.html?cm_ven=GOOGLEN NYSE hit
      

http://www.bloomberg.com/apps/news?pid=20601109&sid=aqA9QhRSNeqM
Yuan Deposes Dollar on China Border in Sign of Future (Update1)

US Regulators clamp down on commodities markets

http://www.bloomberg.com/apps/news?pid=20601087&sid=adrp0JTQiJG8 July 7 (Bloomberg) -- U.S. regulators say they may clamp down on oil and gas price speculators by limiting the holdings of energy futures traders, including index and exchange-traded funds.

The Commodity Futures Trading Commission will hold hearings this month and next to explore the need for government-imposed restrictions on speculative trading in oil, gas and other energy markets, Chairman Gary Gensler said today in a statement.

http://www.smartbrief.com/news/ata/storyDetails.jsp?issueid=641587EC-1FC3-49E6-A0CB-BC39343B26A2&copyid=013966BF-6310-478E-8EFD-572D96F172CD
Chairman Gary Gensler announced today that the Commodity Futures Trading Commission will hold hearings this summer to consider imposing position limits for energy commodities, including oil and natural gas. In addition, it will begin publishing how much hedge funds and other financial firms are trading in oil and other commodities, with an eye toward curbing what critics say is speculation that pushes up prices. Wall Street Journal, The (07/07) Bloomberg (07/07) MarketWatch (07/07) Reuters (07/07) Washington Post, The (07/07)

http://online.wsj.com/article/SB124696097259205141.html?mod=dist_smartbrief
WASHINGTON -- U.S. commodities regulators, in an effort to crack down on excessive speculation, plan to propose sweeping trading limits on oil, natural gas and possibly other commodities.

EES-TradestationCharterDeveloper2009

EES-TradestationCharterDeveloper2009, originally uploaded by eliteeservices.

EES Tradestation Charter Developer for 2009

VPS for FOREX Traders and Online Professionals

VPS – Virtual Private Server

FOREX trading is an internet intensive business. A VPS (Virtual Private Server) is a computer in a remote data center that traders access from their home or work PC. The advantages of using a VPS or fully dedicated remote server are many:

• Automated trading systems are run from the server. In the case of any internet outage, trading will not be impacted.
  
• Key files such as Expert Advisors, strategy test reports, strategy parameters, and other important files can be stored on the server for remote access.
  
• Teams of traders can collaborate on strategies or trade from one consolidated location using software such as Radmin. Instead of emailing strategy updates to a group, all participants can modify files and work from one consolidated location.
  
• Run server software such as Microsoft Project Server, Microsoft Exchange, and other Office Server technologies without the headache of having to setup your own server.
  
• Access your trading server while travelling. Have the full power of a server with the mobility of a laptop, using Windows Remote Desktop Connection or Radmin.
  
• Use the server to backup files
  
• Run an FTP server for corporate files or trading strategies
  

These facilities are usually in hardened facilities with multiple redundant power and network backups. When leasing a dedicated or virtual dedicated server, you are piggybacking on their investment in infrastructure. Anyone could build their own hardened facility in their backyard, but don't think it can be done for less than $250,000. Just the purchasing of a power generator can run from $2,500 to $10,000 and more, and still would only offer a small amount of power extension time comparing with those purchased by server facilities.

FOREX Trading is not the only use of such facilities; in fact any online business can utilize VPS technologies. For example, a VPS could be used to make regular backups of strategic corporate files. Physical backup systems can be expensive and human error can result in the incorrect backup of critical data.

Running any online business, including working professionals, need a suite of robust internet related services. A virtual office is your online office where you can access your business from wherever you are.

FX System Hosting offers internet services in addition to VPS and dedicated servers such as:

• Domain names, Certified Registration, Business Registration
  
• Web Hosting, Site Analytics, Search Engine Visibility
  
• SSL Certificates, Code Signing Certificates
  
• Email accounts, CRM, Express Email Marketing
  
• Marketing Tools, Logo Design, Fax thru Email
  
• Design services , Website Design
  

An account at FX System Hosting will allow you to consolidate your online purchases with one source offering a plethora of online services and products under one account. FX System Hosting offers one of the most competitive pricing mechanisms on the market, with offers such as $1.99 .COM domain names and $19.99 .EU domain names.

Any order of a Dedicated Server from FX System Hosting includes free Elite Expert Trader EA package ($99 retail value) and free installation and setup ($149 value) – mention offer code EA20092B.

www.fxsystemhosting.com

German investors get violent: OAP gang 'tortured financial adviser'

http://www.independent.co.uk/news/world/europe/oap-gang-tortured-financial-adviser-1716327.html A group of pensioners has been accused of kidnapping and torturing a financial adviser who lost over €2m of their savings.

http://www.nakedcapitalism.com/2009/06/will-americas-besieged-middle-class.html

FBAR (Foreign Bank and Financial Accounts) due June 30th

http://www.irs.gov/businesses/small/article/0,,id=148845,00.html

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR)

What is an FBAR? An FBAR is a Report of Foreign Bank and Financial Account. The form number is TD F 90-22.1 (PDF). Who must file an FBAR? Any United States person who has a financial interest in or signature authority, or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year What is a United States person? A "United States person" includes a citizen or resident of the United States, or a person in and doing business in the United States.  The term "person" includes individuals and all forms of business entities, trusts, and estates. Would a foreign athlete or entertainer that occasionally visits the U.S. in order to compete or perform in an event, be considered a United States person for FBAR purposes?  Whether a person is considered, for FBAR purposes, to be in, and doing business in the United States is determined based on an analysis of the facts and circumstances of each case.  Generally, a person is not considered to be in, and doing business in the United States unless that person is conducting business within the United States on a regular and continuous basis.  Persons who are merely visiting the United States or who sporadically conduct business in the United States, are not in, and doing business in, the United States for FBAR reporting purposes.  For example, a person who is not a citizen or resident of the United States, is engaged in a business and only occasionally visits the United States to meet clients would not be in, and doing business in the United States for FBAR reporting purposes.  Also, artists, athletes, and entertainers who are not citizens or residents of the United States and who only occasionally come to the United States to participate in exhibits, sporting events, or performances, do not have to file FBARs. What is a foreign country? A "foreign country" includes all geographical areas outside the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands). What is a financial account? A "financial account" includes any bank, securities, securities derivatives or other financial instruments accounts. The term includes any savings, demand, checking, deposit, or any other account maintained with a financial institution or other person engaged in the business of a financial institution.  Individual bonds, notes, or stock certificates held by the filer are not a financial account nor is an unsecured loan to a foreign trade or business that is not a financial institution. What constitutes signature or other authority over an account? A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained. Other authority exists in a person who can exercise power that is comparable to signature authority over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means. What does "maximum value of account" mean (for Box 15 on the FBAR)? The maximum value of account is the largest amount of currency and non-monetary assets that appear on any quarterly or more frequent account statements issued for the applicable year. If periodic account statements are not issued, the maximum account value is the largest amount of currency or non-monetary assets in the account at any time during the year. Convert foreign currency by using the official exchange rate at the end of the year. The value of stock, other securities or other non-monetary assets in an account reported on TD F 90-22.1 (PDF) is the fair market value at the end of the calendar year. If the asset is withdrawn from the account, the value is the fair market value at the time of the withdrawal. Is an FBAR required if the account generates neither interest nor dividend income? Yes, an FBAR must be filed whether or not the foreign account generates any income. How do foreign account holders report their accounts to the IRS? The holders report their foreign accounts by completing boxes 7a and 7b on Form 1040 Schedule B and completing Form TD F 90-22.1 (PDF).  When is the FBAR due? The FBAR is due by June 30th of the year following the year that the account holder meets the $10,000 threshold.  The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.   There is no extension available for filing the FBAR. If an account holder does not have all the available information to file the return by June 30th, they should file as complete a return as they can and amend the document when the additional or new information becomes available. Where are FBAR forms available? FBAR forms are available: On the IRS.gov (PDF) Web site. On the Department of the Treasury's Financial Crimes Enforcement Network Web site for Money Services Businesses. By calling IRS at  (800) 829-3676 . Is there a help line for questions about completing the form? You can get answers to questions concerning the FBAR form by calling  (800) 800-2877 , option 2. Where do account holders file the FBAR? Send completed forms to: U.S. Department of the Treasury P.O. Box 32621 Detroit, MI 48232-0621 The FBAR is not to be filed with the filer's Federal tax return. How does an FBAR filer amend a previously filed FBAR? FBAR filers can amend a previously filed FBAR by: Checking the Amended box in the upper right hand corner of the first page of the form; Making the needed additions or correction; Stapling it to a copy of the original FBAR; and Attaching a statement explaining the changes. What is the statute of limitations for assessing civil penalties for violations of the FBAR requirements? Civil penalties can be assessed anytime up to six years after the date of the violation. How long should account holders retain records of the foreign accounts? Records of accounts required to be reported on an FBAR must be retained for a period of five years.  Failure to maintain required records may result in civil penalties, criminal penalties, or both. What happens if an account holder is required to file an FBAR and fails to do so? Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties, or both. If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late.  No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.  Keep copies, for your record, of what you send. An American citizen, X, gives a person who is a citizen or resident of the U.S. power of attorney to X's Canadian bank accounts.  X files an FBAR form annually.  Does the power of attorney also need to file an FBAR? Yes, because the power of attorney has signature or other authority over the accounts and because he is a U.S. person. A fiduciary who is a U.S. person has control as a trustee for an IRA with a foreign account.   Should an FBAR be filed? Yes, because the fiduciary is a U.S. person. Does the term "other authority over a financial account" mean that a person, who has the power to direct how an account is invested, but who cannot make disbursements to the accounts, has to file an FBAR? No, an FBAR is not required because the person has no power of disposition of money or other property in the account. Does more than one form need to be filed for a husband and wife owning a joint account? No, if the names and social security numbers of the joint owners are fully disclosed on the filed FBAR. A spouse having a joint financial interest in an account with the filing spouse should be included as a joint account owner in Part III of the FBAR.  The filer should write (spouse) on line 26 after the last name of the joint spousal owner.  If the only reportable accounts of the filer's spouse are those reported as joint owners, the filer's spouse need not file a separate report.  If the accounts are owned jointly by both spouses, the filer's spouse should also sign the report.  It should be noted that if the filer's spouse has a financial interest in other accounts that are not jointly owned with the filer or has signature or other authority over other accounts, the filer's spouse should file a separate report for all accounts including those owned jointly with the other spouse.  Must a U.S. person file an FBAR on a Eurodollar account in the Cayman Islands? Yes, the Cayman Islands account is a foreign account. A N.Y. corporation owns a foreign company that has foreign accounts.  The corporation will file an FBAR for the foreign company's accounts.  Do the primary owners of the U.S. Company also have to file? Yes, if any owner directly or indirectly owns more than 50 percent of the total value of the shares of stock, that owner will have to file an FBAR. A company has over 25 foreign accounts.  What should they enter in Part ll of the FBAR? If the filer holds a financial interest in more than 25 accounts, check the yes box in item 14 and indicate the number of accounts in the space provided.  Do not complete any further items in Part II or Part III of the report.  Sign the form in item 44/45 and enter the date signed in item 46.  Any person who lists more than 25 accounts in item 14 must provide all the information called for in Part II and Part III when requested by the Department of the Treasury. A person is a non-resident alien and only visits the United States to manage his personal interests, such as rental property.  Does that person have to file an FBAR? A person who is not a United States citizen or resident and who visits the United States to manage his personal investments, such as rental property, and conducts no other business, is not considered to be in, and doing business in, the United States for FBAR reporting purposes and does not have to file FBARs. What are the exceptions to the FBAR filing requirement? Accounts in U.S. military banking facilities, operated by a United States financial institution to serve U.S. Government installations abroad, are not considered as accounts in a foreign country.  For this reason, these accounts do not have to be reported on an FBAR. An officer or employee of a bank which is subject to the Supervision of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, or the Federal Deposit Insurance Corporation need not report that he has signature or other authority over a foreign bank, securities or other financial account maintained by the bank, if the officer or employee has NO personal financial interest in the account. An officer or employee of a domestic corporation whose equity securities are listed on a national securities exchange or which has assets exceeding $10 million and 500 or more shareholders of record, need not file a report concerning the other signature authority over a foreign financial account of the corporation, if he has NO personal financial interest in the account and he has been advised, in writing, by the chief financial officer of the corporation that the corporation has filed a current report, which includes that account. Does the IRS have an email address to send questions regarding the FBAR? You can send questions concerning the FBAR to FBARquestions@irs.gov.  The  email system does not accept actual FBAR reports. Rate the Small Business and Self-Employed Web Site

Goldman has record bonuses on trading currencies

http://www.guardian.co.uk/business/2009/jun/21/goldman-sachs-bonus-payments Goldman has record bonuses on trading currencies

CIA attracts Bankers in NY ads

http://www.reuters.com/article/topNews/idUSTRE55H6CH20090618?feedType=RSS&feedName=topNews

CIA seeks laid-off bankers in N.Y. recruitment drive

Obama may bulldoze US cities

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5516536/US-cities-may-have-to-be-bulldozed-in-order-to-survive.html US cities may have to be bulldozed in order to survive

Germans to install gold vending machines

http://www.nakedcapitalism.com/2009/06/germans-to-install-gold-vending.html

From the Financial Times:

Germans will soon be able to sate their appetite for the yellow metal as easily as buying a chocolate bar after plans were announced on Tuesday to install gold vending machines in airports and railway stations across the country.

The venture by the TG-Gold-Super-Markt company, based near Stuttgart, aims to build on soaring retail interest...

A prototype vending machine on display in Frankfurt Airport on Tuesday appeared to be a converted version of the dispensers typically used to sell snacks. For €30 airport shoppers could buy a 1g wafer of gold, with a larger 10g bar priced on Tuesday at €245 and gold coins also on sale.

When the Financial Times bought the cheapest product it was dispensed in an oblong metal box labelled "My Golden Treasure", with a certificate of authenticity signed by Mr Geissler but no receipt and the wrong change. Mr Geissler said he hoped to have a more advanced prototype available this month.

Gold prices from the machines – about 30 per cent higher than market prices for the cheapest product – will be updated every few minutes.

A camera on the machine monitors transactions for money laundering controls...

Interest in gold has soared during the financial crisis and Germany was last year the "star performer" in retail physical investment in gold – coins and bars – according to GFMS, the London-based precious metals consultancy. Retail demand reached an estimated 108 tonnes in 2008, up from 36 tonnes in 2007 and 28 tonnes in 2006.

Jens Willenbockel, an investment banker who saw the machine while passing through the airport, said he believed there could be a market. "Because of the crisis there is a lot of awareness of gold," he said. "It is also a great gift for children – for them getting gold is like a fairytale."

Russian confidence in the dollar drives EUR/USD down 500 pips

http://www.bloomberg.com/apps/news?pid=20601103&sid=arSByVtDsdh0
By Lukanyo Mnyanda and Wes Goodman

June 15 (Bloomberg) -- Treasuries rose for a third day after Russian Finance Minister Alexei Kudrin said his nation has confidence in the dollar and there are no immediate plans to switch to a new reserve currency.

Elite E Services announces Hot Links Feed

Elite E Services announces Hot Links Feed:

http://feeds.delicious.com/v2/rss/eliteeservices?count=15

Feed Homepage:

http://delicious.com/eliteeservices

Links will be posted on EES Blog (see on the right):

http://eliteeservices.blogspot.com

To follow the RSS directly, use IE or Outlook (import RSS)

By clicking 'subscribe to this feed' it will be saved and updated live in IE. Also, Vista users can use the RSS feed as a gadget on their desktop.

The feed will be used to post links for articles and news as a replacement for EES Private FX chat which was recently shut down.

www.eliteforexblog.com

Peak Soil Investment: This Quiet Land Grab is Just Beginning

http://wallstreetpit.com/5019-peak-soil-investment-this-quiet-land-grab-is-just-beginning Peak Soil Investment: This Quiet Land Grab is Just Beginning
http://www.telegraph.co.uk/comment/columnists/christopherbooker/5525933/Crops-under-stress-as-temperatures-fall.html Crops under stress as temperatures fall

Senators held stock in bailed-out banks

http://thehill.com/leading-the-news/senators-held-stock-in-bailed-out-banks-2009-06-12.html Senators who oversee the $700 billion Wall Street rescue package held stocks in many of the banks bailed out towards the end of last year, according to financial disclosure reports released Friday.

According to the reports detailing senators' finances in 2008, nearly half of the members of the Senate Banking Committee had holdings in financial institutions that have taken funds from the Troubled Asset Relief Program (TARP). The panel has jurisdiction over the bailout fund and other relief efforts directed by federal regulators to save the nation's financial system.

For example, Sen. Tim Johnson (D-S.D.), a Banking panel member, has assets in several banks that have taken bailout funds. Along with Goldman Sachs, the senator has several assets in Bank of America funds, worth at least $115,00. Bank of America has received $45 billion in government funds.