Comment Text:
i0-001
COMMENT
CL-03876
From:
Sent:
To:
Subject:
Attach:
[email protected]
Monday, January 25, 2010 6:34 PM
secretary
[Fwd: RE: Comments on Proposed FX Regs.]
untitled-2
Original Message
Subject: RE: Comments on Proposed FX Regs.
From: "WFG"
Date: Mon, January 25, 2010 2:15 pm
To: [email protected]
Atttention CFTC:
Re: Commmentary on proposed CFTC regs on Forex--as requested
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 Forex traders in the
U.S.
This will mean that to trade a single standard lot of $100,000 one wouldl
need $10,000 in your
account. Currently it can be as little as $1000 (100:1) in the U.S. and
$250 in the U.K. (400:1)! How does this "help" U.S. retail traders or the
FX Industry in U.S.??
The government is suppose to be helping the retail Forex trader by
providing a safe environment via regulations--that is, safe from fraud and
unfair practices--NOT safe from risk in the market. The Risk in the
market is what makes profits possible for investors, hedging of risk
available for those who have currency risks in their business, and
provides liquidity in this public market. Reducing the leverage to 10:1
will reduce not only the risk but the profit opportunity for the retail
trader and increase the hedging cost for hedgers of currency risk. This
does not serve the public--rather damages the FX Trader by reducing his
profit opportunity- - and increases the cost of hedgeing risk -- thus
weakening the economy even more than it is. WHERE IS THE BENEFIT? TO
WHOM?
In addition, the proposed regs will drive more FX business to off-shore
brokers--which has already begun due to recent regs passed that were also
damaging to the retail trader's profit potential in Forex. This will also
have a negative impact on U.S. employment in the industry due to more
investors rushing to offshore brokers.
Some regulation to keep out the scams is justifiable. But TOO MUCH
regulation is damaging to the benefits of a "free Market" and the publici0-001
COMMENT
CL-03876
on both sides--invetors and hedgers-- who can benefit therefrom.
In my opinion and virtually ALL of those in the industry with whom I have
spoken, THESE PROPOSED REGS ARE TOO MUCH AND DAMAGE THE FREE MARKET AND
ITS BENEFITS TO INVESTORS, HEDGERS AND THE ECONOMY!
Yours truly,
Charles R. Rietz, FX Trader
Gilbert, AZAtttention CFTC:
Re: Commmentary on proposed CFTC regs on Forex--as requested
As part of the proposed regulations, it is stated." "leverage in retail forex
customer accounts" would be subject to a l O-to-1 fimitation, "which means 10:1
leverage wouM be the maximum amount allowed for all Forex traders in the U.S.
This will mean that to trade a single standard lot of $100,000 one wouldl need $10,000 in your
account. Currently it can be as little as $1000 (100:1) in the U.S. and $250 in the U.K. (400:1)!
How does this "help" U.S. retail traders or the FX Industry in U.S.??
The government is suppose to be helping the retail Forex trader by providing a safe
environment via regulations--that is, safe from fraud and unfair practices--NOT safe
from risk in the market. The Risk in the market is what makes profits possible for
investors, hedging of risk available for those who have currency risks in their
business, and provides liquidity in this public market.
Reducing the leverage to
10:1
will reduce not only the risk but the profit opportunity for the retail trader and increase
the hedging cost for hedgers of currency risk.
This does not serve the public--rather
damages the FX Trader by reducing his profit opportunity- - and increases the cost of
hedgeing risk -- thus weakening the economy even more than it is. WHERE IS THE
BENEFIT? TO WHOM?
In addition, the proposed regs will drive more FX business to off-shore brokers--which
has already begun due to recent regs passed that were also damaging to the retail
trader's profit potential in Forex. This will also have a negative impact on U.S.
employment in the industry due to more investors rushing to offshore brokers.
Some regulation to keep out the scams is justifiable. But TOO MUCH regulation is
damaging to the benefits of a "free Market" and the public on both sides--invetors and
hedgers-- who can benefit therefrom.
In my opinion and virtually ALL of those in the industry with whom I have spoken,
THESE PROPOSED REGS ARE TOO MUCH AND DAMAGE THE FREE MARKET AND
ITS BENEFITS TO INVESTORS, HEDGERS AND THE ECONOMY!
Yours truly,
Charles R. Rietz, FX Trader
Gilbert, AZ
