Comment Text:
i0-001
COMMENT
CL-01509
From:
Sent:
To:
Subject:
Leon Yohai
Thursday, January 21, 2010 3:08 AM
secretary
Regulation of retail Forex
RIN
3038-AC61
Dear CFTC
The proposed rule of decreasing the leverage from 100:1 to 10:1 will push overseas 95% of FX
traders in the US.
Let's see the reasons:
a) with 10:1 leverage investors with smaller deposits cannot trade anymore. Forex will not be
appealing to customers with deposits below $50k. The average account opening size in the
US is $6k. Thus retail Forexwill be eliminated as a product in this country. In the US today,
there are 500,000 Forex active accounts with a $3 bil sum deposited among US FCMs. All
those deposits will shift to EU where there are many leverage options.
b) constitution rights: an American citizen should have the right to invest his money the way
he wants. The risk % that someone has to take, it's his personal decision and not a regulatory
decision.
c) with 10 mil trading accounts in US retail in stocks, futures and options and close to $100 bil
in deposits today, I estimate that within 2014 60% of US investors will shift their funds in EU
with CFDs for example and a wider range of products.
As an American citizen I have to say, that this country suffers from overcivilization. We don't
feel free anymore. This is not a free country. You eliminate our choices everyday more with
the excuse "to protect us". We want to have the right to make mistakes. It's our life not yours.
Best
Leon Giochais
Sent from my iPhone
