Comment Text:
i0-001
COMMENT
CL-02314
From:
Sent:
To:
Subject:
Dexter Brown
Thursday, January 21, 2010 9:59 PM
secretary
STRONGLY OBJECT TO 10-1 LEVERAGE LIMIT IN REGULATION OF
RETAIL FOREX PROPOSAL RIN 3038-AC61
Attn : David Stawick, Secretary, CFTC
and ALL CFTC policymakers:
As a non-affiliated US-based Retail FX trader, please note for
the record that I am STRONGLY OPPOSED to the 10-1 leverage limit
as proposed in RIN 3038-AC61 relating to the Regulation of
Retail Forex.
Counter-productive effects
This senseless limit would in NO way protect, aid or benefit me
but rather would greatly harm me since this restriction, if
passed,
5022 would require that I submit substantially more margin-funds
into non-protected, non-FDIC insured, non-SIPC eligible
accounts, actually exposing me to increased risk in the event of
bankruptcy of my Forex Broker.
5022 would NOT divert my business into regulated-Futures trading
(as the CFTC is probably hoping), but rather would cause me to
seek an unreliable, higher-risk offshore FX broker to trade
through, whose practices might be questionable.
5022 would eliminate one of the greatest benefits of trading
Forex : My ability to efficiently deploy my own trading capital
in the way that I choose.
Lower FX vols require far greater leverage
FX volatilities are generally substantially lower than in the
Equities or Futures market. Therefore, significantly more
leverage is required simply to capture equivalent trading
opportunities.
Nanny not needed
I do not want the CFTC to treat me like a child and dictate how
I should trade. While 100-1 leverage is available to me - should
I choose it - I am never forced to use it.
The bottom line is that OTC Retail Forex trading is NOT Futures
trading. Please do not try to treat it as such!i0-001
COMMENT
CL-02314
PLEASE IMMEDIATELY STRIKE YOUR PROPOSED 10-1 LEVERAGE
LIMITATIONS.
DonS019t let proposal RIN 3038-AC61 become an expensive lesson
in unintended consequencesS026.
Thank you.
DexBiz
Get your own "800" number
Voicemail, fax, email, and a lot more
http://www.ureach.com/reg/t ag
