Comment Text:
i0-001
COMMENT
CL-02714
From:
Sent:
To:
Subject:
Roman Startsev
Friday,
January 22, 2010 1:17 PM
secretary
'Regulation of Retail Forex'
the identification number RIN 3038-AC61
Dear Sir/Madam,
I just received the message from IBFX regarding your proposal - to reduce the overall leverage from 100:1 to 10:1 basis. I
would like to state some comments regarding this proposal.
Despite I think that the choice of leverage is up-to final customer, many of these 'clients' do NOT understand that the risk
even 100:1 is too large. This huge level of leverage makes these clients want to get xxx% profit per short period; then they
risk too much and finally they lose their deposits. This method of thinking in any business is too dangerous. Not only for
clients, but also for family members (they lose not also their only money, but the money of all family members)
I think your initiative is right: the lesser the leverage, the more chances the client have to stay in trading business. 10:1
leverage is more than enough.
Regards, Roman.
..... Original Message .....
From: Interbank FX [mailto:[email protected]]
Sent: Thursday, January 21, 2010 5:02 AM
To: Roman Startsev
Subject: CFTC's Proposal of Leverage Changes: How You Can Help
Interbank FX
Interbank
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Questions? Contact Us
Dear Valued Customer,
As many of you are aware, the U.S. Commodity Futures Trading Commission (CFTC) announced on January 13, 2010 that it
is seeking public comment on proposed regulations concerning retail Forex trading.
As part of the proposed regulations, it is stated: "leverage in retail forex customer accounts would be subject to a 10-to-1
limitation," which means 10:1 leverage would be the maximum amount allowed for all F orex traders in the U.S.
An example of how the proposed regulatory restrictions would affect a major currency pair appears below:
Maximum Leverage under Current Regulations Maximum Leverage under Proposed CFTC Changes
USD/CHF
USD/CHF
100:1 leverage (one percent) 10:1 leverage (10 percent)
1
lot (100,000)
1
lot (100,000)
Margin requirement: $1,000 Margin requirement: $10,000
We stand behind the belief that you should be given the freedom and right to choose the amount of leverage that is
appropriate for your individual desired risk, and that this basic principle of 'choice' is in jeopardy by the proposed CFTC
regulations.i0-001
COMMENT
CL-02714
If you feel strongly about the proposal, ~ve encourage you to help determine the outcome of these proposed regulations. You
can help make an impact by sending comments directly to the CFTC at: [email protected].
Please include 'Regulation of Retail Forex' in the subject line of your message and the identification number RIN 3038-AC61
in the body of the message.
You can also submit your comments by any of the follo~ving methods (include above ID number):
*
Fax: (202) 418-5521
*
Mail: David Sta~vick, Secretary Commodity
Futures Trading Commision 1155 21st Street, N.W.,
Washington, DC 20581
*
Courier: Use the same as mail above.
In the upcoming days, Interbank FX and the rest of the U.S. Forex Dealer Coalition ~vill be releasing a more formal opinion
about the proposed changes. Please feel free to read further details about the regulation on the CFTC ~vebsite by clicking here
.
In the interim, ~ve encourage you to voice your
opinions to the CFTC and your local U.S. representative.
As al~vays, ~ve ~vant the best for our traders. We hope you'll join forces ~vith us to prohibit the proposed leverage
requirements.
The Interbank FX Team
International
1.800.813.776
US and Canada 866.468.3739 Australia 1.800.884.912 Indonesia 001.803.017.9112 Malaysia
Ne~v Zealand 0800.445647 Singapore 800.101.2097 United Kingdom 0.808.120.1966 International +1.801.930.6800
Interbank FX
TM
LLC I IBFXTM I IBFXU~ I Registered FCM, Member NFA Interbank FX I 3165 Millrock Drive STE 200 I
Salt Lake City, UT 84121 I Tel: 1.866.468.3739 To opt-out of future emails from Interbank FX, click here
.
Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial
markets and suitable for sophisticated individuals and institutions. The leveraged nature of FX trading means that any market
movement ~vill have an equally proportional effect on your deposited funds. This may ~vork against you as ~vell as for you.
The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to
maintain your position. If you fail to meet any margin call ~vithin the time prescribed, your position ~vill be liquidated and
you ~vill be responsible for any resulting losses.i0-001
COMMENT
CL-02714
