Comment Text:
i0-001
COMMENT
CL-02610
From:
Sent:
To:
Subject:
Sherman Smith
Friday, January 22, 2010 10:48 AM
secretary
Regulation of Retail Forex : I oppose the 10:1 leverage proposal
RIN 3038-AC61
Dear CFTC,
I have been a forex trader for over one year. Within that short time frame, there has been various
regulations that never was America's scenario in the forex market before- hedging being banned
and leverage above 100:1 being banned, to name two.
I have now read that the CFTC is planning on reducing the leverage on all forex brokers in
America to only 10:1. I took one look at this needless and senseless proposal and said to myself,
"Surely they jest." But the CFTC does not jest as evidenced from the source that this report came
from.
Needless to say, I am thoroughly opposed to this George-Orwellian-1984-1ike regulation of
American's decision-making capacities when it comes to their own money. Stating that 100:1 is a
dangerously risky leverage for Americans to play around with does not become the CFTC's
business.
By law, all forex brokers, all forex books, all forex documents, all forex web forums, etc etc. have
to state that forex is, in itself, a risky venture. It is therefore the responsibility of the people who
decide, on their own volition, to trade foreign currencies through a broker to ask for lower
leverage if they feel the 100:l-leverage risk is too high for them. The CFTC does not make the call
to just ban leverage over 10:1 for everyone as of which.
If the CFTC, nonetheless, passes this ludicrous proposal that basically every forex trader and
forex broker, ECN and market maker alike, oppose then we the traders will take all our business
to overseas accounts where these regulations are non-existent.
If the American forex brokers lose money, business and traders as a result of this proposal, then
the CFTC will answer to each and every one of them, as well as any other business connected to
forex in America that is also hit by it. The multi-billion-dollar business of foreign exchange in
America WILL BE DAMAGED if this proposal is passed into law. The economy is bad enough as
it is in America right now with double-digit unemployment.
Do you undertsand? Enough is enough with whatever has been going on in this nation and it's
economy for the past 2.5 years. We do not need this proposal to be passed.., and if it is, rest
assured there WILL BE ACTION taken that will end up corrupting the entire American foreign
exchange industry.
Thank you very much
SS
