Comment Text:
i0-001
COMMENT
CL-04888
From:
Sent:
To:
Subject:
Neil D. Rosenthal
Wednesday, February 3, 2010 10:15 PM
secretary
Regulation of Retail Forex
RIN 3038-AC6
Dear Secretary,
I am against the proposal to limit Retail Forex leverage to 10:1. Though this regulation is intended to protect
Retail Forex traders from the dangers of over-leveraging their accounts, it will do quite the opposite. Many
traders, in order to continue to trade with high leverage, will move their accounts overseas. Though there are
many scrupulous and safe overseas brokers, there are many who are unscrupulous, unsafe, and located in
countries where regulation and enforcement are quite lax. In addition, some of these overseas brokers still offer
200:1 or even 400:1 leverage, whereas U.S. brokers currently adhere to NFA-mandated 100:1 leverage. The
regulation will have the net effect of putting U.S. traders in more, not less, danger of losing their account equity.
The new leverage regulation should be stricken from the proposed rule changes.
Sincerely yours,
Neil D. Rosenthal
