(Reuters) – U.S. bank regulators would more strictly supervise banks’ relationships with retail customers who speculate in the foreign exchange market, under a proposal issued on Tuesday.
The Federal Deposit Insurance Corp plan would require retail customers who engage in foreign exchange transactions with a bank, that are not cleared through an exchange, to post a margin amount of 2 percent in the case of major currencies, such as the dollar and euro.
The amount would rise to 5 percent of the notional value of the transaction for some other currencies.
