Comment Text:
i0-001
COMMENT
CL-03794
From:
Sent:
To:
Subject:
erfon
haubenstock
Monday, January 25, 2010 2:15 PM
secretary
Regulation of Retail Forex
Dear CFTC. as a forex investor, I must say I am OUTRAGED by the CFTCs recent rule proposal, which would limit
customer trading leverage to 10 to 1,
Retail forex fraud is not something that is caused by the actions of retail forex dealers; rather, it is caused by unlicensed con-
men who masquerade as forex experts promising silly and unjustifiable returns before disappearing with customer funds.
That is why the FXDC fully supports the CFTCs rule requiring all introducing brokers be licensed. That rule will solve forex
fraud, not 10 to 1 leverage.
Furthermore, 10 to 1 leverage would be a crippling blow to the U.S. forex industry. It would encourage fraud both at home
and abroad as customers seeking to trade retail forex would have no other legitimate domestic alternative. All the
professional forex traders I know would be forced to open unregulated international accounts, as 10 to 1 leverage increases
our risk of loss by decreasing our risk to reward ratio.
I think you'll find in the coming days and weeks that the US forex community is absolutely opposed to this totally
unnecessary restriction proposed by the CFTC. Leverage limits don't need to be regulated, they're not the problem!
