Comment Text:
i0-001
COMMENT
CL-05455
From:
Sent:
To:
Subject:
Craig King
Friday, February 19, 2010 2:23 AM
secretary
Regulation of Retail Forex RIN 3038-AC61
David Stawick,
I am a current employee of a US retail forex dealer. I am very concerned about the proposed rules from the CFTC.
The CFTCs recent rule proposal, which would limit customer trading leverage to 10 to 1, would be a crippling blow to
the U.S. forex industry.
This unsustainable rule would drive U.S. forex dealers, which brings tens of millions of dollars into the U.S. banking
industry each day, offshore into the hands of foreign competitors.
It would encourage fraud both at home and abroad as customers seeking to trade retail forex would have no other
legitimate domestic alternative.
Since 2001, FXDC members have added an estimated 1,500 employees to their companies in the United States
alone. I am concerned about my job, now is
not the time for the CFTC to propose rules that would eliminate
valuable high-tech service jobs, leaving thousands of additional Americans unemployed.
Unregulated dealers from around the world will be the beneficiaries of the 10 to 1 leverage rule. These unregulated
forex dealers dont have to worry about capital requirements, risk management models, marketing ethics, dealing
practices or even returning a customers funds.
These dealers will be out of the reach of the CFTC and they
will
thrive.
Retail forex fraud is not something that is caused by the actions of retail forex dealers; rather, it is
caused by
unlicensed con-men who masquerade as forex experts promising silly and unjustifiable returns before
disappearing with customer
funds.That is why the FXDC fully supports the CFTCs rule requiring all introducing
brokers be licensed.
That rule will solve forex fraud, not 10 to 1 leverage.
Thank you for your consideration.
Craig King
