Comment Text:
i0-001
COMMENT
CL-00104
From:
Sent:
To:
Subject:
Brian
Friday, January 15, 2010 4:26 PM
secretary
Regulation of Retail Forex
Dear Sir/ Madam,
I believe lowering the leverage requirement for retail Forex transactions will do the exact opposite
in regards to customer protection.
Lowering the leverage of retail FOREX in the U.S. would do nothing but kill a legitimate business.
Why would Americans keep trading in a climate that is laden with laws against them? Why would
foreigners open a FOREX trading account in the U.S. when the rules are prohibitively against them
compared to other jurisdictions around the globe?
By enacting this legislation to restrict and limit traders further will only cause a mass exodus of
FOREX trading in the retail U.S. markets.
This will cause American traders to put their money in less than scrupulous brokers with less ethics
than what the U.S. permits via the NFA oversight.
So if American traders put their money in a foreign FOREX broker how can you say this will benefit
the trader? How will this protect the American trader? How will this benefit the U.S. based broker?
How will this encourage investment from foreign means in the retail U.S. FOREX market when rules
around the globe are more favorable to the trader?
The U.S. retail FOREX market is an infant when comparing it to the U.K. and various other places.
Yet they don't see the need for these kinds of rules and restrictions.
If you are so worried about the consumer you should educate them and not restrict them.
If it's not obvious already I would hope that you elect to leave leverage rates the way they
currently are at the minimum of 100: 1. Otherwise the 'blood' of the retail U.S. Forex markets are
on your hands and the people you are trying to protect will be leaving your jurisdiction in droves.
In these times of poor economic conditions and job losses by the numbers, for some it is their only
income and though they may not be getting rich and famous they are making their bills, why take
that way from them now.
Or is your real desire to truly destroy the US Retail Forex Industry and all the jobs, income and
investment that go with it?
Regards
Brian Vodvarka
