Comment Text:
i0-001
COMMENT
CL-06549
From:
Sent:
To:
Subject:
Matthew Bauman
Monday, March 8, 2010 3:52 PM
secretary
CFTC Propsal for 10:1 Leverage...PLEASE DO NOT PASS THIS!!!
Dear CFTC,
I am a retail trader in the forex markets. I support my family through this market and by utilizing the current
leverage limits when trades offer unique opportunities. Without the current leverage limits, I could not utilize my
current trading techniques and would unable to support my family throught the markets.
Please understand, this is my only source of income since being laid off over two years ago. The leverage limits
which are being proposed would devestate my family. Please do not go forward with these limitations.
As a trader, I believe it is in the traders best interest to understand how the markets work and how and when to
utilize leverage. I do not believe it is the job of the government to protect us from themself. Laws will never be
able to, and should never be created, protect a person from themself.Please look into regulations which protect us
from unfair spreads and brokerage scams and leave the trading to us.
Thank you for taking the time to read my email.
Matthew
Forwarded message
From: Alpari (US), LLC <_A__!pari
US LLC@___m___a__i[.__v___r__e___s_p.com>
Date: Mon, Mar 8, 2010 at 3:33 PM
Subject: CFTC Propsal - 3 weeks left for comments
To: bauman [email protected]
Dear Traders,
We are sending you this follow up email to remind you that you have a voice and there are only three
weeks left! The CFTC is accepting comments on it's proposal until March 22, 2010. We strongly
encourage you to submit your comments to them during this time period. Below you can find the
response of Alpari (US) in regards to the new CFTC proposed regulations.
Alpari (US) Speaks out about the CFTC Proposal
New CFTC Proposed Rule
On January 13,
2010, The Commodity Futures Trading Commission
(CFTC) released a public proposal,
Regulation of Off-Exchange Retail
Foreign
Exchange Transactions and Intermediaries,
which imposes new
requirements on the U.S. Forex industry. The proposal significantly
changes the leverage permitted on certain accounts
and, if
passed,
would have a drastic effect on retail investors. In the CFTC proposed
regulation, leverage
in retail
forex customer accounts would be subject
to a 10-to-1 limitation.
Currently, the CFTC enforces 100:1 leverage
(a 1%
margin requirement)
to open and maintain a position on a forex transaction. With the 10:1i0-001
COMMENT
CL-06549
leverage proposed, retail traders would be subject to a 10% margin
requirement. Retail traders would have to invest significantly more to
place trades of the same size, ultimately resulting in a decreased return
or loss on invested margin.* The risk-reward ratio that is so appealing
to the average investor today under 100:1 leverage would no longer be
available if the proposal is passed.
The effect of this change can be summarized through the following
example:
::Currency Pair Price.Transaction .C u r rent Margin
::Proposed Margin:
i
Quote
iSize
iiRequirement at
iRequirement at:
iEUR/USD
1.4285
::1 standard lot = ::$1,428.50
::$14,285.00
::100,000
iGBP/USD
1.6370
::1 standard lot =
::$1,637.00
::$16,370.00
::100,000
Where we stand
Alpari (US) has always been a strong supporter
of ethical and fair
business practices and the protections offered
to traders through
industry regulation. However, AIpari (US) does not support
this
CFTC
proposal.
Alpari (US) believes that this proposal discourages beginners from
developing and strengthening their trading style. It effectively prevents
investors from evaluating their own appetite for risk and making
personal investing decisions.
We place a strong emphasis on educating traders to make informed and
responsible decisions. We believe that, with proper education, it is not
necessary for the U.S. Forex industry to be subject to these
regulations. Only recently have the doors opened for retail investors to
trade in this market; these doors are effectively closed through the
proposed rules, once again making the FX market accessible only to
financial institutions.
You have a voice
Our goal is to guide you in understanding the intentions and
ramifications of this proposal and remind you that, as a retail investor,
you have a say in how your freedoms are controlled. We believe that
this is a decision to be made by the traders, not the regulators. You are
the largest group who can make these ramifications heard.i0-001
COMMENT
CL-06549
We encourage you to send your comments to the CFTC during the 60
day period, ending on March 22, 2010. If you have an opinion on
whether the CFTC should restrict leverage across the board to 10 to 1,
we want you to voice it. Send your comments to
[email protected]
and
include "Regulation of Retail Forex" as the subject line of the
message. Additionally, you can file comments
online.,
by fax at 202-
418-5521 or by mail to:
Secretary of the Commission
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street NW
Washington, DC 20581
Team of AIpari (US)
14 Wall Street Suite 5H
New York, NY 10005
Tel: 646.825.5760
Fax: 646.825.5761
www.alpari-us.com
NFA ID: 0379678
*The potential of profit is equal to the risk of loss on all leveraged
transactions.
Risk Warning: Trading foreign exchange, commodity futures, options,
precious metals and other over-the-counter products carries a high level
of risk and may not be suitable for all investors. The high degree of
leverage associated with such trading can result in substantial losses,
as well as gains. The past performance of any trading strategy or
methodology is not indicative of future results, which can vary due to
market volatility; it should not be interpreted as a forecast of future
performance. You should carefully consider whether such trading is
suitable for you in light of your financial condition, level of experience
and appetite for risk, and seek advice from an independent financial
advisor, if you have any doubts. AIpari (US), LLC is registered with the
CFTC as a Futures Commission Merchant and is a member of the NFA-
Member ID: 0379678.
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COMMENT
CL-06549
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