Comment Text:
i0-001
COMMENT
CL-02399
From:
Sent:
To:
Subject:
Dennis Spexet
Friday, January 22, 2010 12:49 AM
secretary
Change in Leverage of Retail Forex Accounts
Hello,
I am writing regarding the proposed change in leverage of 10-to-1 in retail forex customer accounts (RIN 3038-
AC61).
Such an extreme action would be highly damaging to the US retail forex market, not to mention my own line of
work as a private investor. Right now, the retail forex market is highly competitive, thanks to many past CFTC
actions. The existing leverage of 100-to-1 is competitive not just with foreign brokers, but with the futures
markets as well.
If the leverage is limited to 10-to-1, then the US retail forex business will be driven to foreign brokers who can
provide more competitive terms (albeit with less protection and regulation). It will not move to the US futures
markets, which have a significantly different cost structure that is disadvantageous in many ways to the
individual investor.
urge you to reconsider this change, and leave the leverage in retail forex as it currently stands.
Thanks much,
Dennis Spexet
[email protected]
715-259-3660
