Comment Text:
i0-001
COMMENT
CL-05174
From:
Sent:
To:
Subject:
R. Amiyna Abd-Allah
Monday, February 8, 2010 12:21 PM
secretary
Proposed Forex Regulations
Re: RIN 3038-AC61
Dear David Stawick and CFTC :
I oppose the proposed new regulations to restrict leverage in the retail forex market from a maximum of
100:1 to 10:1.
This drastic shift in a policy that has already recently been restricted would push many retail forex
traders out of the market. It would frankly be a crippling blow to the forex industry.
The past few regulatory changes (First In First Out, the hedging ban and the reduction of maximum
leverage to 100:1) have sent many forex traders to firms outside of the United States. These traders have
not stopped trading because of the new regulations. Instead, they are trading in places that do not have
such restrictive regulations, such as the UK.
When these rules were enforced, firms like the one I work for spent lots of valuable hours notifying
clients of the changes, updating systems and fielding questions and concerns from traders. These firms
should not continually subj ect to revamping our systems, software and websites at the whim of the NFA
and CFTC. Our primary resources should be used to provide a reliable and resourceful trading
environment.
Traders should be able to choose the leverage they want to trade at with adequate disclosure of the risks
involved. Small forex traders would unnecessarily be left out of this relatively new retail trading
opportunity. Many of these new traders open their accounts with less than $5000. Their tiny trades are
just a drop in the bucket of a market that trades almost $4 trillion daily. They are at no risk of crippling
international markets as other highly leveraged trading has done in the recent past. The retail forex
market should not be the subject of much needed regulation of financial markets.
If this regulation passes, my job and the jobs of many of my colleagues in New Jersey, New York and
Pennsylvania would be at risk in addition to the thousands of other employees of retail forex dealers in
this country. As a country, we cannot afford to lose more jobs in this weak economy. We should be
working together to keep jobs and money within the United States.
In conclusion, I strongly urge you not to pass the proposed regulation on US retail forex brokers.
Sincerely
Raida Amiyna Abdallah
