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From:
Sent:
To:
Subject:
Ray < [email protected] >
Thursday, March 11, 2010 4:59 AM
secretary
Regulation of Retail FOREX
David Stawick,
Secretary, Commodity Futures Trading Commission,
1155 21st Street, N.W.,
Washington, DC 20581.
RE: RIN 3038-AC61
Dear Mr. Stawick,
I am opposed to ANY lowering of the current leverage limit in the retail FOREX market. It should be left at no less
than 100:1 and the 10:1 limit should be tossed out as stupid, unconstitional and unpatriotic.
I Repeat I
am
aflainst 10:1 limit rule.
Futhermore,
the previous rules imposed by the NFA [FIFO and No Hedging in same FX acct] should be
reconsidered and tossed out as Anti-Competitive as they do nothing in the way of promoting or allowing U.S.
based brokers a competitive edge in the Retail FOREX business as the opening of Foreign Brokerage offices by
U.S. based brokers would clearly show you.
In case you're not paying attention to the world around you please read the article below ..........
U.S. Rep. Boswell: Chairs subcommittee hearing on Commodity Exchange Act in 2008 Farm Bill
3/3/2010
For Immediate Release
March 3, 2010
Contact: Jane Slusark, 202-225-3806
Jane. [email protected]
Boswell Chairs Subcommittee Hearing on Commodity Exchange Act in 2008 Farm Bill
Washington, D.C. Today, Congressman Leonard Boswell chaired a hearing of the Subcommittee on General Farm
Commodities and Risk Management to review changes to the Commodity Exchange Act included in the 2008 farm bill and
new proposed rules by the Commodity Futures Trading Commission (CFTC). CFTC Chairman Gary Genseler provided
witness testimony.
Our job in Congress and on this Subcommittee is to bring greater transparency and oversight to the future markets and
ensure that we provide necessary oversight of these markets without hindering legitimate consumers from operating within
them, said Boswell in his opening statement. To the extent fraudulent activity is taking place and hard-working
Americans are getting taken to the cleaners, we need to ensure that federal regulators have the tools necessary to protect
consumers.
In the 2008 farm bill, the House Agriculture Committee strengthened the CFTC s authority over retail foreign currency
(forex) transactions and in January 2010, the CFTC published a proposed rule to implement that authority. This rule would
put in place requirements for registration, disclosure, recordkeeping, financial reporting, and minimal capital standards for
forex trading. However, this rule also would impose a new leverage requirement on retail foreign exchange customeri0-001
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accounts that many believe will force customers to take their business overseas.
Congressman Boswell asked Chairman Genseler to explain how the CFTC developed this rule and if the changes in the
2008 farm bill have given the CFTC enough authority to effectively regulate the commodity markets.
Today s hearing heavily focused on a 10-to-1 leverage requirement imposed on retail foreign exchange customer accounts
included in the proposed rule. Retail foreign exchange dealers and their customers argue that putting in place such a low
leverage limit will force foreign exchange transactions overseas where such limits are not enforced and where dealers are
not subject to registration and disclosure requirements.
I am pleased that the CFTC Chairman acknowledged our concerns and appeared open to changes to the leverage
requirement, Boswell said. The CFTC has received over 5,600 comments on the foreign exchange proposed rule and I
am hopeful that this input will help the Commission to find a common ground that won t chase business overseas, while
still protecting consumer interests.
