Comment Text:
i0-001
COMMENT
CL-02154
From:
Sent:
To:
Subject:
CAMPOS FAMILY
Thursday, January 21, 2010 7:35 PM
secretary
Regulation of Retail Forex
Your proposed new regulations are onerous and all you will be doing is
forcing small retail accounts like mine to move to a UK based firm.
.......... Forwarded message ..........
From: MB Trading
Date: Thu, Jan 21, 2010 at 7:37 AM
Subject: Comments regarding CFTC proposal
To: camposfamily @gmail. corn
Dear MB Trading FX Client,
On January 13, 2010, the CFTC announced proposed new regulations
concerning retail foreign currency transactions. Many of the proposed
changes would implement important consumer protection regulations,
which MB Trading firmly favors. However, one of the proposed changes
would radically lower Forex leverage from 100:1 to 10:1 for all NFA
and CFTC regulated Forex firms.
Under the proposed rule, here are some examples based on trading 10,000 USD:
Currency PairCurrent Margin Requirements*Proposed Margin Requirements
EUR/U SD$14251,420
GBP/USD$16351,630
USD/JPY$10051,000
*Current margin requirements based on rates as of January 19th, 2010
The impact of these new requirements for a F OREX trader could be
significant. Under existing rules and based on present day exchange
rates, a $10,000 account could buy or short just over 700,000 EURUSD.
With the new proposed rule, the same account would only be able to buy
or short 70,000 EURUSD, significantly impacting the results of the
trade.
MB Trading recognizes the importance of regulation that strengthens
industry oversight. We agree with policing and regulating the
industry, as was Congress' intent when empowering the CFTC to create
additional rules. However, we don't agree with policies that might
clearly disadvantage firms in the United States which in turn
disadvantage you, the client. We encourage you to voice your
individual opinion directly to the CFTC. The Public Comment Period is
open for 60 days from the date of publication, which was January 13,
2010. You may find the entire draft proposal here: CFTC.Gov and you
may contact the CFTC directly by sending an email to
secretary @cftc. gov with "Re gulation of Retail F orex" in the subject
line.
Thank you for your support.i0-001
COMMENT
CL-02154
Ross Ditlove
CEO
MB Trading
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Securities products are offered through MB Trading, member FINRA,
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futures based products, as ~vell as offer off-exchange foreign currency
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forex is speculative in nature and not appropriate for all investors.
investors should only use risk capital ~vhen trading futures, options
and forex because there is al~vays the risk of substantial loss.
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