Comment Text:
i0-001
COMMENT
CL-07961
From:
Sent:
To:
Subject:
LK
Tuesday, March 16, 2010 3:29 PM
secretary
'Regulation of Retail Forex'
March 16, 2010
Secretary
CFTC
Dear Secretary of the CFTC,
I'm an American citizen teaching in Bahrain. I trade the Forex market part-time. I was glad to locate
your address with IBFX Forex broker, as I'm concerned about the news that spot Forex leverage may be
restricted to 1:10 in the U.S.A. I find this disturbing. Like most private Forex traders I would
appreciate the oversight of government agencies in the area of monitoring the security of client deposits.
The proposed constriction of trading leverage to 1:10 is however, a transparent effort to protect vested
interests in Futures brokerage firms in the U.S.A.. The computerized controls that spot forex brokers
can maintain on margin can close out traders without going into a deficit. This is a significant benefit
over Futures brokers where there is always the risk that a position cannot be closed until the account is
depleted and a serious deficit is incurred.
IfU.S. spot forex brokers cannot compete with the 1100-1:200 leverage available from Forex brokers
outside the country, it's likely that U.S. traders will move their funds outside the U.S.A.. This can't be
considered a positive side effect of this proposed regulation.
I would request that the committee seriously reconsidered this aspect of the new regulations.
Best Regards,
Lon Kaufmann
RIN3038-AC61
Lon D. Kaufmann, M.F.A., M.A.
Associate Professor of Design and Assistant Dean
Program in Fine Arts and Computer Graphics
New York Institute of Technology
Campus 851, Road 3828
Block 338, Adliya
PO Box 11287
Kingdom of Bahrain
+973.177.11.444 x419 (o)
+973.177.12.684 (fax)
+973.362.93471 (m)
