Comment Text:
i0-001
COMMENT
CL-02174
From:
Sent:
To:
Subject:
Tony Yu
Thursday, January 21, 2010 7:46 PM
secretary < secreta ry@ C FTC. g ov >
Fw: Comments regarding CFTC proposal
Dear,
I'm a Forex trader, and a client of MB Trading.
I just heard that you would implement some very important consumer protection regulations
includes lower the leverage to 10:1 instead of the current 100: 1.
I apprciate all your other efforts to protect the consumers and oversight this industry, but
strongley against to lower the maxmium leverage.
Even under current leverage, I can already well control my risk by using 100:1 leverage.
For example, if I have 14,000USD in my account, I would only trade around 100,000EUR/USD
each time. Then my 10,000USD allow me to bear around 1000 points' risk.
but under your new proposed regulation, for trading 100,000EUR/USD, my 14,000USD can only
allow me to bear 100 pionts' risk.
So formainting the same buying power and bearing the same 1000 points' risk, I have to
always put additional 14,000USD into my account.
That is apparently affair to me and most of those small traders like me. If your this new
regulation about the leverage implemented, I believe most those small tracder have to move
their account to other countries like Europe. If this happen, it will surely hurt the retail forex
trading industry.
Thanks & Best Regards
Tony Yu
~]k: MB Trading
~i~l~I~: 2010-01-22 01:27:00
~:
oitony
~:
Comments regarding CFTC proposal
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.
Explore the
MB Trading Difference:
Unique EC;N for FOREX,
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commissions:
FOREX
Under the proposed rule, here are some examples based on
$2.95 peri0-001
COMMENT
CL-02174
trading 10,000 USD:
Current Margin
Proposed Margin
Currency Pair
Requirements*
Requirements
EUR/USD
$142
$1,420
GBP/USD
$163
$1,630
USD/JPY
$100
$1,000
*Current margin requirements based on rates as of January 19th, 2010
The impact of these new requirements for a FOREX 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 [email protected]
with "Regulation
of Retail Forex" in the subject line.
100,000 USD traded
STOCKS
$4.95 per trade
up to 10,000 shares
FUTURES
$0.95 per contract
plus exchanged fees
OPTIONS
$0.95 per contract
No minimum
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Thank you for your support.
Ross Ditlove
CEO
MB Trading
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Disclosure:
Securities products are offered through MB Trading, member FINRA, SlPC. MB Trading Futures, Inc. (MBTF) is CFTC registered
FCM and member of NFA. MBTF offers execution and settlement services for futures based products, as well as offer off-exchange
foreign currency (FOREX) products through MB Trading. Trading in futures, options and forex is speculative in nature and not
appropriate for all investors, investors should only use risk capital when trading futures, options and forex because there is always
the risk of substantial loss. Account access, trade executions and system response may be adversely affected by market
conditions, quote delays, system performance and other factors.
MB Trading 11926 E. Maple Ave I El Segundo, CA 90245i0-001
COMMENT
CL-02174
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