Comment Text:
i0-001
COMMENT
CL-04419
From:
Sent:
To:
Cc:
Subject:
Sergio Ross
Friday, January 29, 2010 1:37 AM
secretary
mbtnews@mbtrading, com
Regulation of Retail Forex
Hi, CFTC
Could you stop this madness and abolish introduction of 1:10 leverage
for Forex Trading.
Should this happens, I would close all my USA based Forex accounts
and move them to UK, where rules for Forex trading are not touched at all
for centuries by stupid bourocrates, like this is happenning during last
year in USA.
Regards
Sergio Ross
--- On Thu, 1/21/10, MB Trading
wrote:
From: MB Trading
Subject: Comments regarding CFTC proposal
To: [email protected]
Date: Thursday, January 21, 2010, 3:37 PM
Dear MB Trading FX Client,
On January 13, 2010, the CFTC announced proposed new
regulations concerning retail foreign currency transactions.
Many of the proposed changes would implement important
consumer protection regulations, which MB Trading firmly
favors. However, one of the proposed changes would
radically lower Forex leverage from 100:1 to 10:1 for all
NFA and CFTC regulated Forex firms.
Under the proposed rule, here are some examples based on
trading 10,000 USD:
Current Margin
Proposed Margin
Currency Pair
Requirements*
Requirements
EU R/USD
$142
$1,420
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up to 10,000 sharesi0-001
COIMMENT
CL-04419
GB P/US D
$163
I
$1,630
US D/JPY
$100
I
$1,000
*Current margin requirements based on rates as of January 19th, 2010
The impact of these new requirements for a FOREX trader
could be significant. Under existing rules and based on
present day exchange rates, a $10,000 account could buy or
short just over 700,000 EURUSD. With the new proposed
rule, the same account would only be able to buy or short
70,000 EURUSD, significantly impacting the results of the
trade.
MB Trading recognizes the importance of regulation that
strengthens industry oversight. We agree with policing and
regulating the industry, as was Congress' intent when
empowering the CFTC to create additional rules. However,
we don't agree with policies that might clearly disadvantage
firms in the United States which in turn disadvantage you,
the client. We encourage you to voice your individual
opinion directly to the CFTC. The Public Comment Period is
open for 60 days from the date of publication, which was
January 13, 2010. You may find the entire draft proposal
here: CFTC.Gov
and you may contact the CFTC directly by
sending an email to [email protected]
with "Regulation
of Retail Forex" in the subject line.
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Thank you for your support.
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CEO
MB Trading
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