Font Size: AAA // Print // Bookmark

Comment for Proposed Rule 75 FR 3281

  • From: Andy Bisulca
    Organization(s):

    Comment No: 4774
    Date: 2/2/2010

    Comment Text:

    i0-001
    COMMENT
    CL-04774
    From:
    Sent:
    To:
    Cc:
    Subject:
    Andy Bisulca
    Tuesday, February 2, 2010 9:23 AM
    secretary
    Stawick, David ; Smith, Thomas J.
    ; Bauer, Jennifer ; Penner, William
    ; Cummings, Christopher W.
    ; Sanchez, Peter
    I STRONGLY OBJECT TO 10-1 LEVERAGE LIMIT IN REGULATION OF
    RETAIL FOREX PROPOSAL RIN 3038-AC61
    Attn : 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.
    Counter-Productive Effects
    This senseless limit would in NO way protect, aid or benefit me but rather would greatly harm
    me since this restriction, if passed,
    ¯
    would require that I submit substantially more margin-funds into non-protected, non-FDIC
    insured, non-SlPC 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 (as the CFTC is probably
    hoping), 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.
    Lower FX Volumes Require Far Greater Leverage
    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.
    Nanny Not Needed
    I do not want the CFTC to treat me like a child and dictate how I should trade. VVhile 100-1
    leverage is available to me - should I choose it - I am never forced to use it. The bottom line is
    that OTC Retail Forex trading is NOT Futures trading. Please do not try to treat it as such!
    PLEASE IMMEDIATELY STRIKE YOUR PROPOSED 10-1 LEVERAGE LIMITATIONS.
    Don't let proposal RIN 3038-AC61 become an expensive lessonin unintended
    consequences ....
    Thank you.
    Andy Bisulca