Comment Text:
i0-001
COMMENT
CL-03839
From:
Sent:
To:
Subject:
lambros klouvidakis
Monday, January 25, 2010 4:45 PM
secretary
Re: Alpari (US) Speaks out about the CFTC Proposal
Hello,
Not a good idea, another wall for the haves and the have nots. Chase the big cats and leave alone the retailer. Your
ideas only cater exactly to those I mentioned. Only the ignorant will agree with you. The smart ones know whats
going on. Its the biggest cake in the world and people just like to tamper with it--if anything chase the brokers and
some of their shady regulations---police them not the public...that's what your their for. And not to protect the cake
from the retailer in order for you guys and the tea party.
Thanx
..... Original Message .....
From: Alpari (US), LLC
To:
[email protected]
Sent:
Monday, January 25,2010 4:04 PM
Subject:
Alpari (US) Speaks out about the CFTC Proposal
Alpari (US) Speaks out about the CFTC Proposal
New CI~C Proposed Rule
On January 13, 2010, The Commodity Futures Trading Commission (CFTC) released a
public proposal,
Regulation of Off-Exchange Retail Foreign Exchange Transactions
and Intermediaries,
which imposes new requirements on the U.S. Forex industry.
The proposal significantly changes the leverage permitted on certain accounts and, if
passed, would have a drastic effect on retail investors. In the CFTC proposed
regulation, leverage in retail forex customer accounts would be subject to a 10-to-1
limitation.
Currently, the CFTC enforces lOO:1 leverage (a 1% margin requirement)
to
open and
maintain a position on a forex transaction. With the lO:1 leverage proposed, retail
traders would be subject to a lO% margin requirement. Retail traders would have to
invest significantly more to place trades of the same size, ultimately resulting in a
decreased return or loss on invested margin.
~
The risk-reward ratio that is so
appealing to the average investor today under lOO:1 leverage would no longer be
available if the proposal is passed.
The effect of this change can be summarized through the following example:
Currency
Price
Transaction
Current Margin
Proposed
Margin
Pair
Quote
Size
Requirement at
Requirement
at
100:1
Leverage
10:1
Leverage
EUR/USD
L4285
I standard lot =
$1,428.5o
$14,285.oo
100,000i0-001
COMMENT
CL-03839
l
Where we stand
Mpari (US) has always been a strong supporter of ethical and fair business practices
and the protections offered to traders through industry regulation. However, Mpari
(US) does not support
this
CFTC proposal.
Mpari (US) believes that this proposal discourages beginners from developing and
strengthening their trading style. It effectively prevents investors from evaluating
their own appetite for risk and making personal investing decisions.
We place a strong emphasis on educating traders to make informed and responsible
decisions. We believe that, with proper education, it is not necessary for the U.S. Forex
industry to be subject to these regulations. Only recently have the doors opened for
retail investors to trade in this market; these doors are effectively closed through the
proposed rules, once again making the FX market accessible only to financial
institutions.
You have a voice
Our goal is to guide you in understanding the intentions and ramifications of this
proposal and remind you that, as a retail investor, you have a say in how your
freedoms are controlled. We believe that this is a decision to be made by the traders,
not the regulators. You are the largest group who can make these ramifications
heard.
We encourage you
to
send your comments
to
the CFTC during the 6o day period,
ending on March ~,~,, ~,olo. If you have an opinion on whether the CFTC should
restrict leverage across the board to lO to 1, we want you to voice it. Send your
comments to [email protected]
and include [] Regulation of Retail Forex[] as
the subject line of the message. Additionally, you can file comments
online,
by fax
at 9o9-418-559a or by
mail
to:
Secretary of the Commission
Commodity Futures Trading Commission
Three Lafayette Centre
1155 alst Street NW
Washington, DC ao581
Team
of Alpari (US)
14 Wall Street Suite 5H
New
York,
NY 10005
Tel: 646.825.5760
Fax:
646.825.5761
www.alpari-us.com
NFA ID: o379678
*The potential of profit is equal to the risk of loss on all leveraged transactions.i0-001
COMMENT
CL-03839
Risk Warning:
Trading foreign exchange, commodity futures, options, precious
metals and other over-the-counter products carries a high level of risk and may not be
suitable for all investors. The high degree of leverage associated with such trading can
result in substantial losses, as well as gains. The past performance of any trading
strategy or methodology is not indicative of future results, which can vary due to
market volatility; it should not be interpreted as a forecast of future performance. You
should carefully consider whether such trading is suitable for you in light of your
financial condition, level of experience and appetite for risk, and seek advice from an
independent financial advisor, if you have any doubts. Mpari (US), LLC is registered
with the CFTC as a Futures Commission Merchant and is a member of the NFA
-
Member ID: 0379678.
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Phone: 1-646-825-5760
Email: [email protected]
Web: www.alpari-us.com
14 Wall St., Suite 5H, New York, NY 10005
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