Day Trading & Forex Forum

bouchnak

Hi,

Why CFD are not permited in USA.
Can some one privide a link to these regulations.

thx

CFDplayer

CFDs are not permitted in the United States, due to restrictions by the U.S. Securities and Exchange Commission on OTC financial instruments.

US financial instruments Categorization

Financial instruments can be categorized by form depending on whether they are cash instruments or derivative instruments:

Cash instrumentss are financial instruments whose value is determined directly by markets. They can be divided into securities, which are readily transferable, and other cash instruments such as loans and deposits, where both borrower and lender have to agree on a transfer.

Derivative instruments are financial instruments which derive their value from the value and characteristics of one or more underlying assets. They can be divided into exchange-traded derivatives and over-the-counter (OTC) derivatives.
Alternatively, financial instruments can be categorized by "asset class" depending on whether they are equity based (reflecting ownership of the issuing entity) or debt based (reflecting a loan the investor has made to the issuing entity). If it is debt, it can be further categorised into short term (less than one year) or long term.

Foreign Exchange instruments and transactions are neither debt nor equity based and belong in their own category.

czervoudakis

Can you please advise where you found that these are restricted by the SEC? thank you