CurrencyTrader 07/2008 Escreveu:The China Banking Regulatory Commission(CRBC) officially banned banks in the country from allowing clients to trade forex markets on margin in June.
A statement on the CRBC Web site likened the practice to gambling.
While banks have been profiting from operations in the forex market, “80 percent or even 90 percent of the investors are in the red,” according to the statement.
Additional reasons for the ban included banks’ inability to assess risk and select customers who can afford the potential losses.
The statement also said allowing dealers to trade in the forex markets for themselves as well as for their clients posed a “a clear risk of moral hazard.”
The ban comes after only two years of trial operations in retail margin forex trading.
Banks were ordered to not take on any new clients and to quickly settle any outstanding transactions.
Enviado: 7/7/2008 4:43