Comment Text:
i0-001
COIMMENT
CL-06060
From:
Sent:
To:
Subject:
Matt Johnson < [email protected]>
Friday, March 5, 2010 9:41 AM
secretary
Regulation of Retail Forex
RIN 3038-AC61
I am a professional in the US Futures industry, and I am writing in regards to the proposed legislation to reduce the maximum
leverage for retail forex traders to 10:1. While I personally do not offer forex trading to my clients, I think this proposal is not
in line with other practices within the futures industry. If you look at the foreign exchange products traded at the CME Group,
the current overnight margin requirements are approximately 40:1 leverage. This example was based on the current Euro
Currency futures margin rate. While I agree that some of the practices of 100:1 or even 200:1 may be excessive, any
regulations to reduce this leverage should be in line with what is currently available in the futures market. I'm sure the CME
Group would love to benefit greatly from a reduction to 10:1 in the forex market, but clearly this would not be fair.
Regards,
Matt Johnson
Matt Johnson
CEO/Managing Member
[email protected]
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