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Comment for Proposed Rule 75 FR 3281

  • From: Robert I Baran
    Organization(s):

    Comment No: 4373
    Date: 1/28/2010

    Comment Text:

    i0-001
    COMMENT
    CL-04373
    From:
    Sent:
    To:
    Subject:
    Baran, J&R
    Thursday, January 28, 2010 4:57 PM
    secretary
    Fw: N.b., Regulation of Retail Forex; other
    REF: I recently sent you an email pertaining to subject above. I have another issue I wish to brin gto your attention,
    viz.,
    the accrual of iD theft information by forex companies
    Did you know that application to trade with one of these forex online outfits, n.b., FXCM, requires photo id, credit
    card information, address, age, personal income and net worth, drivrs lic. #, banking information, and a number of
    other very personal data which taken collectively would almost guarantee identity theft!
    And just to open a micro account!
    And when there is no possibility of loss of money for online outfit.
    I call them an outfit because they aren't even a broker. They don't have to report gain or loss to the IRS; they use
    tactics very likely to be judged criminal (using stops - privately placed -to scalp profits at the expense of the
    trader), if scrutinized, and are like a scab on one's skin.
    Why don't you do something about it? A Texan would put it differently: get off your butt.
    Dear Secretary;
    This letter (honestly) was prompted by emails I have received from forex brokers.
    It is in two parts;
    Part1 ... the first in response to their request I write you pleading in response to CFTC identification number RIN
    3038-AC61.
    In answer: I believe this proposed action is
    not the
    solution to the problem. True it will
    reduce the
    volatility in forex markets but leave the American investor still vulnerable to the excesses of Globex (esp.
    night trading).
    Part 2 ... trading in our markets (where comments apply), whether it be forex or commodities, stocks, etc.,is
    dominated during the American night and by foreigners/Globex. I believe Globex/electronic trading is the absolute
    best invention ever taken advantage of by the bank of England to rid Americans of their money. What does the
    typical (once referred to as the odd-lotter) investor or speculator do first in the morning? Why he or she checks to
    see what the devils of the dark have done while he or she has been asleep! What ever the investment medium is
    (paper or piggies) the night rules the day! And in our markets! How ludicrous!
    All of the (tradable) major moves in currencies take place at night. Or almost all. The stock market takes its clue for
    the day from the so-called pre-market activity. The price and direction of corn or beans is dictated by electronic
    trading at night via Globex. Again: how ludicrous!
    Finally ... the best test of how well or badly the financial investing environment actually (be it forex, commodities,
    stocks, bonds ..... you name it) is whether an academician (or people at Iowa Grain) can actually prosper ~
    sound fundamentals, supply and demand considerations, etc.) over
    time.
    And not whether trading limits or the
    size of a bank account or insider information is used.i0-001
    COMMENT
    CL-04373
    The upstart with a PC and a bag of indicators should not be the determinant!
    Again - our major problem is situational. Changing limits will not change this situation.
    Robert I Baran
    former: CPO/CTA and analyst (for over 45 years)
    ex-military officer
    ex-registered CFTC/NFA member