Comment Text:
i0-001
COMMENT
CL-00203
From:
Sent:
To:
Subject:
chpdofficer@yahoo, com
Saturday, January 16, 2010 7:30 PM
secretary
Public Comment Form
Below is the result of your feedback form. It was submitted by
([email protected]) on Saturday, January 16, 2010 at 19:29:48
commenter_subject: Regulation of Retail Forex
commenter_comments: 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 scams 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 currentlyi0-001
COMMENT
CL-00203
proposed. The economy is trying to recover. This
~vould only hamper those efforts.
commenter name: Chuck Moreno
commenter ~vithhold address on: ON
