Comment Text:
i0-001
COMMENT
CL-06352
From:
Sent:
To:
Cc:
Subject:
Joseph
Saturday, March 6, 2010 1:59 AM
secretary
[email protected]
Regulation of Retail Forex
Re: RIN 3038 -AC61
As I understand it, the US Commodity Futures Trading Commission recently proposed changes to the Forex market that include
reducing the current leverage available to Forex traders from 100:1 to 10:1.
I am writing to voice my opinion, and strongly object to, in particular, the reduction in leverage being proposed.
In the past year, first a change was made that requires Forextraders to now adhere to a FIFO regulated trading
policy, as opposed
to simply a ticket based policy of trading. Then, a change took place which only permits Forex traders to trade with
a maximum 100:1 leverage,
as opposed to the previous 200:1, and even 400:1 leverage previously offered. And now, a reduction in leverage to a
maximum 10:1
is being proposed? This would be a disaster to retail traders, such as myself, as well as to US based Forex brokers.
Although I'm not in agreement with the aforementioned FIFO and 100:1 maximum leverage changes, I've adapted to
these changes, and have
modifiedmy trading methodology accordingly. A change to the proposed maximum 10:1 leverage, however, would
make it virtually impossible
for meto continue trading with my US based brokers! Essentially, I'd have no choice but to move my Forex accounts
to offshore based brokers,
such as the United Kingdom and/or Australia, where FIFO regulations and unreasonable 10:1 maximum leverage
limitations do not exist.
I just cannot understand how the proposed leverage change benefits me, US based brokers, and the US economy in
general?
I appreciate the protection the CFTC provides, but I appreciate my freedom of choice as well.
In closing, I urge you to reconsider your proposed leverage reduction change and allow retail Forex traders to
continue trading
with the current maximum leverage allowable, 100:1.
Thank you.
Joseph V. D'Amico
Mechanicville, NY 12118
