FAQs: Trading with Reduced Leverage

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As of October 18, 2010 the CFTC will implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Food, Conservation, and Energy Act of 2008. The new provision will require Forex Dealer Members ("FDMs") to collect a security deposit of 2% of the notional value for specified currencies and 5% of the notional value for all other currencies. The intended purpose of this new regulation is to protect over-leveraged traders and brokers alike.

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“These rules of the road will help protect the American public in the largest area of retail fraud that the CFTC oversees: retail foreign exchange,” CFTC Chairman Gary Gensler said. “All CFTC registrants involved in soliciting and selling retail Forex contracts to consumers will now have to comply with rules to protect the investing public. This is also the first final rule that the Commission has published to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act. We look forward to publishing additional rules to protect the American public.”

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As of October 15th at 5pm ET, FX Solutions will be lowering leverage from 100:1 to 50:1 and discontinuing trading on spot metals.

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In order to avoid a potential margin call and possible liquidation of all open positions, FX Solutions encourages you to make deposits before October 15, 2010.

FX Solutions offers several convenient ways to fund your account. To make a deposit, please visit our Fund an Account section. If you are unsure how to calculate the necessary amount of funds needed to keep positions open, please watch our Forex Calculator tutorial.

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Effective October 15, 2010 at 5pm ET, FX Solutions will implement the CFTC's new provision which will limit leverage to 50:1 on the eight major currencies and discontinue the ability to trade spot metals. As a result, it is possible that open positions with insufficient funds may receive a margin call and all open positions will be closed.

The majors include:

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FX Solutions customers may seamlessly open an additional account with FX Solutions in the UK. This alternative will allow you to:

• Maintain leverage up to 400:1 on Forex and up to 200:1 on Spot Metals†
• Continue to trade on a ticket-based system
• Place stop loss and limit orders on individual trades
• Utilize Hedging functionality††

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FX Solutions UK and FX Solutions LLC are owned by City Index Limited. FX Solutions UK is a trading name of City Index Group Limited, is a company registered in England and Wales which is authorized and regulated by the Financial Services Authority (FSA).

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On August 30, 2010, the U.S. Commodity Futures Trading Commission (CFTC) announced the publication in the Federal Register of final regulations concerning off-exchange retail foreign currency transactions; you may read the release at
http://www.cftc.gov/PressRoom/PressReleases/pr5883-10.html

Additionally, you may contact FX Solutions directly at CFTCRuling@fxsol.com