Comment Text:
i0-001
COMMENT
CL-01837
From:
Sent:
To:
Cc:
Subject:
Innocent Nwachukwu
Thursday, January 21, 2010 1:19 PM
secretary
[email protected]
Regulation of Retail Forex
CFTC,
I am against this proposed CFTC leverage change, ID NUMBER: RIN 3038-AC61. I believe a forex trader in the
USA should be allowed the same leverage enjoyed by the rest of the world because forex is a world market.
If this proposed change passes, ! will CLOSE all my USA forex accounts and move them to the UK and other
countries with competitive leverage to choose from.
In closing, I do NOT support this change.
Sincerely,
Innocent Nwachukwu
--- On Wed,
1/20/10, Interbank
FX
wrote:
From: Interbank FX
Subject: CFTC's Proposal of Leverage Changes: How You Can Help
To: [email protected]
Date: Wednesday, January 20, 2010, 6:12 PM
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
100:1 leverage (one percent)
1 lot (100,000)
Maximum Leverage under Proposed CFTC Changes
USD/CHF
10:1 leverage (10 percent)
1 lot (100,000)i0-001
COIMMENT
CL-01837
Margin requirement: $1,000
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: [email protected].
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.
You can also submit your comments by any of the following methods (include above ID number):
¯
Fax: (202) 418-5521
¯
Mail: David Stawick, Secretary Commodity
Futures Trading Commision 1155 21 st Street, N.W.,
Washington, DC 20581
¯
Courier: Use the same as mail above.
In the upcoming days, Interbank FX and the rest of the U.S. Forex Dealer Coalition will be releasing a more formal
opinion about the proposed changes. Please feel free to read further details about the regulation on the CFTC website by
clicking here.
In the interim, we encourage you to voice your opinions to the CFTC and your local U.S. representative.
As always, we want the best for our traders. We hope you'll join forces with us to prohibit the proposed leverage
requirements.
The Interbank FX Team
FXD
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Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The leveraged nature of FX trading means that any market movement will have an
equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain
a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call
within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.
