Comment Text:
i0-001
COMMENT
CL-02931
From:
Sent:
To:
Subject:
dave forsyth
Friday, January 22, 2010 6:12 PM
secretary
Regulation of Retail Forex 10:1 leverage
To the Secretary CTFC
Regarding the proposed implementation of a 10:1 rule on forex leverage
I currently run 2 forex accounts with USA brokers of around $75,000 total value. If the 10:1 rule is
implemented it will severely restrict forex traders ability to trade effectively and I will be closing
both my US accounts immediately. Traders will certainly not work with US brokerages under these
conditions and will move their accounts elsewhere to find more favourable trading conditons outside of
US.
With the introduction of the FIFO rule I have already closed 2 other trading accounts with US NFA
regulated bokers to the value of around $100,000 due to the restrictive nature of the FIFO rule. There is
already a large body of traders who have no interest in dealing with US brokers as a result of FIFO.
Introducing brokers are no longer receiving enquiries from clients to trade in US & many have dropped
those brokerages from the list with whom they deal with.
There is no doubt that a large proportion of US based forex brokers will see further closing of accounts
if the leverage rule is introduced and subsequently millions of dollars will move out of US brokerages.
If clients can trade elsewhere without this restriction they most certainly will. I encourage your
organisation to not restrict trader's ability any further to trade effectively but concentrate on protecting
traders from unscrupulous practices found in the industry instead.
Regards David F. - Australian based Forex Trader
