Comment Text:
i0-001
COMMENT
CL-01398
From:
Sent:
To:
Cc:
Subject:
Scott Olsen
Thursday, January 21, 2010 12:04 AM
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
Dear David Stawick, Secretary, CFTC and ALL CFTC policymakers:
As a non-affiliated US-based Retail FX trader, please note for the record that I 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. If passed,
this restriction:
¯
Would require that I submit substantially more margin-funds into non-protected, non-FDIC insured,
non-SIPC 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, 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.
While 100-1 leverage is available to me - should choose it - I am never forced to use it.
The bottom line is that OTC Retail Forextrading is NOT Futures trading. Please do not try to treat it as such!
PLEASE IMMEDIATELY STRIKE YOUR PROPOSED 10-1 LEVERAGE LIMITATIONS.
Regards,
Scott Olsen
