Comment Text:
i0-001
COMMENT
CL-01691
From:
Sent:
To:
Subject:
M. B.
Thursday, January 21, 2010 10:13 AM
secretary < secretary@ C FTC. g ov >
RIN 3038-AC61
Dear regulators,
I have just received this notice from my forex broker.
Up until now I have always had a choice as to how much leverage I wanted to use for a
transaction. If this rule is adopted then I will not have a choice anymore?
Could you please tell me what are the reasons that have lead you to propose this new
regulation?
Thank you,
Myrna Baron
Dear Valued Customer,
As many of you are aware, the U.S. Commodity Futures Trading Commission (CFTC) announced on
January 13, 2010 that it is seeking public comment on proposed regulations concerning retail Forex
trading.
As part of the proposed regulations, it is stated: "leverage in retail forex customer accounts would
be subject to a 10-to-1 limitation," which means 10:1 leverage would be the maximum amount
allowed for all Forex traders in the U.S.
An example of how the proposed regulatory restrictions would affect a major currency pair appears
below:
Maximum Leverage under Current Regulations
USD/CHF
Maximum Leverage under Proposed CFTC Changes
USD/CHF
100:1 leverage (one percent)
1 lot (100,000)
Margin requirement: $1,000
10:1 leverage (10 percent)
1 lot (100,000)
Margin requirement: $10,000
We stand behind the belief that you should be given the freedom and right to choose the amount
of leverage that is appropriate for your individual desired risk, and that this basic principle of
'choice' is in jeopardy by the proposed CFTC regulations.
If you feel strongly about the proposal, we encourage you to help determine the outcome of these
proposed regulations. You can help make an impact by sending comments directly to the CFTC at:
sec reta ry@ cftc. gov.
Please include 'Regulation of Retail Forex' in the subject line of your message and the identification
number RIN 3038-AC61 in the body of the message.
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