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Comment for Proposed Rule 75 FR 3281

  • From: Lander23comcast
    Organization(s):

    Comment No: 4159
    Date: 1/26/2010

    Comment Text:

    i0-001
    COMMENT
    CL-04159
    From:
    Sent:
    To:
    Cc:
    Subject:
    LANDER23 @comcast. net
    Tuesday, January 26, 2010 8:38 PM
    secretary
    Stawick, David ; Smith, Thomas J.
    ; Bauer, Jennifer ; Penner, William
    ; Cummings, Christopher W.
    ; Sanchez, Peter
    STRONGLY OBJECT TO 10-1 LEVERAGE LIMIT IN REGULATION OF
    RETAIL FOREX PROPOSAL RIN 3038-AC61
    Attn : David Stawick, Secretary, CFTC and ALL CFTC policymakers:
    l am STRONGLY OPPOSED to the 10-1 leverage limit as proposed in RIN 3038-AC61
    relating to the Regulation of Retail Forex.
    This senseless 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-SlPC eligible accounts, actually exposing me to increased risk in the event
    of bankruptcy of my Forex Broker.
    ¯ would NOT divert my business into regulated-Futures trading (as the CFTC is probably
    hoping), but rather would cause me to seek an unreliable, higher-risk offshore FX broker
    to trade through, whose practices might be questionable.
    ¯ would eliminate one of the greatest benefits of trading Forex : My ability to efficiently
    deploy my own trading capital in the way that I choose.
    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. VVhile 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 IMMEDIATELY STRIKE YOUR PROPOSED 10-1 LEVERAGE LIMITATIONS.
    Don[]t let proposal RIN 3038-AC61 become an expensive lesson in unintended
    consequences [] . Please
    do not destroy the livelyhood of the
    many Traders in the United States.
    Thank you.