Comment Text:
i0-001
COMMENT
CL-05673
From:
Sent:
To:
Subject:
[email protected]
Tuesday, March 2, 2010 9:06 AM
secretary
Public Comment Form
Below is the result of your feedback form. It was submitted by
([email protected]) on Tuesday, March 02, 2010 at 09:05:49
commenter_subject: Leverage Change for Forex Trading
commenter_frdate: January 20, 2010
commenter_frpage: Page 3281-3330
commenter_comments: CFTC-
Changing the leverage requirements for retail Forex
transactions will greatly increase the capital
required to trade in Forex.
As it stands now, I can open an account with $1000
and trade 100K worth of currency or 100 lots of
0.01 units worth $1000 each. Under the proposed
rules, I will be allowed to trade only 10 lots of
0.01 units worth $1000 each. This reduction in
buying power will result in a corresponding
reduction in return.
As a result, I will take my retail Forex business
to the UK where they continue to allow 200xl
margin. Funding those accounts cost more since my
credit card charges 3% load on these transactions.
I will likely have more to get my funds back to the
US also. Moving my account to the UK increases my
costs and lowers my returns.
Additionally, this new rule would force capital and
business to be exported from the US to the UK.
With the state of economy in the US, this is
completely the opposite of what we need. This new
proposal is bad for forex traders, and bad for the
economy and bad for the country.
commenter_name: Christopher K Smith
commenter_withhold_address_on: ON
commenter_addressl: 35 Pond Meadow Road
commenter_city: Croton-on-Hudson
commenter_state: NY
commenter_zip: 10520
commenter_fax: 646-737-0588
commenter_phone: 914-862-0093
