Comment Text:
i0-001
COMMENT
CL-00182
From:
Sent:
To:
Subject:
chuck moreno
Saturday, January 16, 2010 1:35 PM
secretary
Regulation of Retail Forex
Mr. Secretary.
I am writing to voice my concern over certain aspects of the proposed legislation regarding the
regulation of retail forex. I believe that the greater purpose of the regulation is to protect the
consumer from potential fraud and scares and I applaud the government for taking efforts. We
know we don't want another Bernie Madoff situation. While the proposed rules requiring broker and
manager registration are good for the consumer other parts would deal a fatal blow to retail forex
in this country. The new minimum capital requirements would
help the biggest brokerages by
reducing the number of new companies that could form and compete with them.
Another problem is that this could easily make smaller and otherwise well
regulated companies move offshore. Some of these will set up shop in places with
little or no regulation. This moves both jobs and money out of the USA. However
the biggest issue that I and the majority of Forex traders in this country have is
the proposal to set maximum leverage to 10: 1. This will be a death sentence to
retail forex in the USA. The government is not protecting people by doing this.
What this would do is force people to move hundreds of millions of dollars to
foreign countries. How will the US government protect us from scams and frauds
in these foreign countries with less or no regulation. If the foreign broker doesn't
want to return our money upon request what recourse will we have. The CFTC will
be to blame. The US would lose countless jobs and not to mention the huge
amounts of loss of tax revenues from the brokers and investors. Based upon what
the government has been pushing I was under the assumption that President
Obama was trying to create jobs not destroy them. Please don't allow this
regulation to go through as currently proposed. The economy is trying to recover.
This would only hamper those efforts.
