Comment Text:
i0-001
COMMENT
CL-01040
From:
Sent:
To:
Subject:
charlie delano
Wednesday, January 20, 2010 4:43 PM
secretary
Regulation of Retail Forex
Dear Secretary Stawick,
I am commenting on the CFTC [] s proposed rules to regulate retail forex trading. Currently, I work at
FXCM and I wanted to state that I [] m glad to see the CFTC addressing the issue of forex fraud by
requiring all solicitors be registered. I believe the licensing of solicitors will solve the problem of forex
fraud and commend you for taking this action.
However, I want to register my strong opposition to the rule that would limit leverage to 10:1. This rule
will put the industry out of business in the United States. It was not the intent of Congress to do this and
I strongly urge you to reconsider.
I have worked at FXCM for almost ten years. I have seen this industry grow and blossom and am
agonized that it would be shut down in the midst of a brutal recession with 10% unemployment. Even
as I write this my company is hiring twenty people due to the success of our firm and the overall growth
of this industry. Our firm employs over 500 people in the United States in places like Texas, California
and New York. It is quite a success story.
Yet, this 10:1 leverage rule will put an end to the domestic forex industry that we are a part of. As you
can see from the many comments about this rule, forex traders will not accept 10:1 leverage. We won[]t
be able to compete with UK brokers where leverage is 200:1. The end result will be a mass migration of
the business to the United Kingdom or to other unregulated jurisdictions. Fraud will get worse, traders
will be less protected and the whole point of getting solicitors to register and get licensed will become
moot.
Finally, as a fellow American, I am pleading with the Commission to consider the thousands of jobs at
stake here. These are good paying, high tech jobs in a healthy and growing industry. The people who
work in the retail ~ industry are not nameless, faceless statistics to be discounted as collateral damage.
They are real people with mortgages, spouses, children and loved ones who rely on the retail forex
industry for their livelihood. I myself have family members who will be directly affected by the
elimination of this industry. My job allows me to care for my sick mother by placing her in a private
assisted living home. Should I lose my job and be forced to go on unemployment I[]11 no longer be able
to care for her. What am I supposed to do then? That is just my story. But each person who works in
retail FX has their own story. I would hope the Commission would take this into consideration wheni0-001
COMMENT
CL-01040
debating this rule.
The CFTC should nurture, guide, and yes, regulate this industry. But the 10:1 leverage rule goes far
beyond that.
Please, don []t destroy the U.S. retail forex industry.
Charlie Delano
2217 Ivan St
#223
Dallas, TX 75201
