Comment Text:
10-002
COMMENT
CL-07800
From:
Sent:
To:
Subject:
Robert Budnick
Monday, February 15, 2010 12:49 PM
secretary
Regulation of Retail Forex
RE: RIN 3038-AC61
I'm an investor in foreign currency through a U.S. dealer. I am very concerned about the proposed rules from the CFTC. The
CFTC's recent rule proposal, which would limit customer trading leverage to 10 to 1, would be a crippling blow to the U.S.
forex industry.
Please register my opposition to the CFTC proposal of a 1:10 leverage for retail Forex trading.
The Forex market's First Rule of Risk is that a trader should never trade with any more capital investment than he/she can
afford to lose.
The CFTC proposed leverage revision from 1:100 to 1:10 would increase the amount of my capital investment by 10 times, a
1000% increase in risk exposure.
The basis for my opposition to the proposal is that it flagrantly disregards the Forex market's First Rule of Risk.
This unsustainable rule would drive U.S. forex dealers, which brings tens of millions of dollars into the U.S. banking industry
each day, offshore into the hands of foreign competitors. It would encourage fraud both at home and abroad as customers
seeking to trade retail forex would have no other legitimate domestic alternative. As an investor, I would be forced to take my
business outside of the United States.
Thank you
Robert Budnick
Robert Budnick
Hacienda Heights CA, 91745
Robert @TradewinsGroup. com
