Comment Text:
i0-001
COMMENT
CL-00684
From:
Sent:
To:
Subject:
Attach:
David Kasujj a
Tuesday, January 19, 2010 3:45 PM
secretary
Regulation of Retail Forex
untitled-[2]
Dear Mr Secretatry,
RE:RIN3038-AC61
It has come to my attention that the CFTC is considering lowering the
leverage requirements from 100:1 to 10:1. If this is the case I strongly
disapprove of this requirement that will be imposed on forex retail
traders.
To begin with, I am sure that you are already aware that we have options
to open different types of accounts at various retail forex brokers with
different leverage amounts. These are the so called micro-accounts,
mini-accounts as well as the standard-acccounts. The micro and
mini-accounts limit your risk exposure to forex trading allowing you to
setup an account for as little as $50.00 at some forex retailers. The
point that I am trying to make is that, if the reason for this 10:1
leverage requirement is for consumer protection, then it is not neccessary
at all.
Secondly, if a requirement like this is enforced, it would force me and
many other retail traders to move our accounts overseas where this
requirement is not enforced. Obviously, this would be devastating
economically and financially for US based forex retail brokers. I would
rather have my account here in the USA than overseas.
Sincerely,
David Kasujj a
David Kasujja, MSc EE
CEO Natmian, Inc
4701 Charles pl Suite 1432
Plano, TX 75093View this email as a web page.
Dear Valued Trader,
The U.S. Commodity Futures Trading Commission (CFTC) announced on January 13, 2010 that it is seeking public
comment on proposed regulations concerning retail forex trading.
As part of the proposed regulations, "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 forex traders in the U.S.
An example of how the proposed regulatory restrictions would affect a major currency pair appears below:
Maximum Leverage under
Maximum Leverage under
Current Regulations
Proposed Changes
USD/JPY
USD/JPY
100:1 leverage (one percent)
10:1 leverage (10 percent)
1 lot (100,000)
1 lot (100,000)
Margin requirement: $1,000
Margin requirement: $10,000
We believe that all traders should have the right to choose the amount of leverage that is appropriate for his/her risk
appetite, and that this basic principle of 'choice' is being threatened by the proposed CFTC regulations.
Should you feel strongly about the proposal, there is still time for you to help determine the outcome of these proposed
regulations. You can make an impact by sending comments directly to the CFTC at:
[email protected].
Please include 'Regulation of Retail Forex' in the subject line of your message and the identification number
RIN 3038-AC61 in the body of the message.
You can also submit your comments by any of the following methods (include above ID number):
¯
Fax: (202) 418-5521
¯
Mail: David Stawick, Secretary
Commodity Futures Trading Commission
1155 21 st Street, N.W.,
Washington, DC 20581
¯
Courier: Use the same as mail above.
In the next few days, GFT and the rest of the U.S. forex industry will be releasing a more formal opinion about the
proposed changes. If you wish, you can read further details about the regulation on the CFTC website by clicking
here.
In the meantime, we encourage you to voice your opinions to the CFTC and your local U.S. representative.As always, we thank you for your business.
Best Regards,
GFT
616 956 9273
US MAIN
800 465 4373
TOLL FREE
IMPORTANT NOTE: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree
of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment
objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and
therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange
trading, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future
results. © 2010 Global Futures & Forex, Ltd. All rights reserved. CD05U.504.011810
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