Comment Text:
i0-001
COMMENT
CL-03607
From:
Sent:
To:
Subject:
adrian oncel
Sunday, January 24, 2010 7:26 PM
secretary
Regulation of Retail Forex
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 limit would in NO way protect, aid or benefit me but
rather would greatly harm me since this restriction, if passed, 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.
I would NOT divert my business into regulated-Futures trading ,but rather would cause me to seek
a higher-risk offshore FX broker to trade through. You will 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. 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! PLEASE STRIKE YOUR PROPOSED 10-1 LEVERAGE LIMITATIONS. Don't let
proposal RIN 3038-AC61 become an expensive lesson in unintended consequences.
Thank you,
Adrian Oncel
