Comment Text:
i0-001
COMMENT
CL-06999
From:
Sent:
To:
Cc:
Subject:
Surya Sonti
Friday, March 12, 2010 8:38 PM
secretary
cftcfeedback@fxdd, com
Regulation of Retail Forex
Dear Sir/Madam
I would like to hereby express my deep concern with the intentions of CFTC to limit the maximal leverage
for retail Forex brokers from the current 1 : 100 to 1:10. In my opinion, the following scenario is likely in
that event:
1. The maximal leverage reguirement will be increased for all US-regulated brokers from the current 1:100
to 1:10. This will clearly demonstrate a complete dismissal of a regular Forex trader's interests if they
happen to be conflicting with the interests of the "big wallets" - banks and non-retail futures brokers. We
do not wish to be "protected" till we go broke just to make them even richer.
2. US-based retail Forex brokers will sure be unwilling to lose their business completely. They've already
got burned with the recent self-imposed regulations of the NFA (which is not even a government agency,
although many traders are made to believe it is) and now clearly realize the 1:10 leverage will be the last
nail into their coffin. These retail brokers will therefore start moving their businesses to other countries
and servicing US customers from there, successful examples of which already exist: Dukascopy in
Switzerland (which has recently introduced MT4 in addition to their custom platform), ATCBrokers and
FXCM in the UK, FXDD in Malta, FXPro in Cyprus etc.
3. The US government in response will do everything possible to prevent US traders from enjoying the
benefits of being serviced in other countries by making overseas transactions to personal bank accounts
even more controlled and restricted.
4. Those traders who make a living from their trading will then have no other choice but to set up offshore
companies for themselves through the Internet (contrary to a popular belief, this doesn't cost much - one
can get an offshore company with an overseas bank account for as low as $1,500).
5. As all (or most) trading accounts will be on the companies' names, the US government may heavily lose
on the income tax they collect from US Forex traders. Thus, trying to harm the average Joe trader and
make the banks and futures brokers richer at his expense, the government is harming themselves in the
end.
Since recently, America (which I really love) has been turning from a land of opportunities to a land of
restrictions. Very sad to see this, indeed.
Please do not implement this new leverage rule.
Surya
Surya Sonti
RIN 3038-AC61
