Comment Text:
i0-001
COMMENT
CL-02167
From:
Sent:
To:
Subject:
j [email protected]
Thursday, January 21, 2010 7:40 PM
secretary
Regulation of Retail Forex I RIN 3038-AC61
Mr. David Stawick, Secretary
Commodity Futures Trading Commission
1155 21st Street, N.W.,
Washington, DC 20581
Dear Mr. Stawick:
My name isJessica Cheung and Iama retail forextrader. I have been trading forexfora little
more than two years.
I am writing to express my disagreement with the CFTC's proposed changes to further decrease
leverage within the retailforex market to 10: 1. The recent regulations to decrease leverage to
100:1 has already been poorly received by many retail traders and I for one would actually like to
see 200:1 leverage to be reinstated.
Iviewthis new proposal as even more disruptive and unnecessary. It would close off the forex
market to many retail traders. Under the proposed changes, we would need to deposit $10,000
USD just to trade one standard lot. This is far too extreme and in reality, this is even more risky
for retail clientele. None of the retailforex brokerage firms offerFDIC insurance coverage. To lock
up $10,000 with a forex broker seems very unreasonable and very risky for retail clients. We can
now trade currency futures micro-lots offered by the CME Group for only a $5000 minimum
account deposit with discount brokerages such as E'Trade. Why should the leverage in the spot
retail market be treated differently and why should we have to deposite $10,000 to trade spot
currencies with no FDIC coverage?
Additionally, to be trading forex for over six months, a retail client would already be well aware of
the risks associated with forextrading. The CFTC should in fact only implement leverage
restrictions on clients during an introductory phase, such as the first three to six months an
account is first opened rather than implement broad-based limitations on all clients. A broad-
based leverage restriction would cause more damage to long term retail forex traders.
I therefore request that the proposed 10:1 leverage amendment be withdrawn and that the 200:1
leverage be reinstated.
Thank you.
Sincerely,
Jessica Cheung
2336 West 13th Street
Third Floor
Brooklyn, NY 11223i0-001
COMMENT
CL-02167
