Comment Text:
i0-001
COMMENT
CL-08058
From:
Sent:
To:
Su bject:
Robert Hoffman
Tuesday, March 16, 2010 9" 18 PM
secretary
Regulation of Retail Forex
Dear Mr. Chairman:
In regards to RIN 3038-AC61
I am in total agreement with Senator Hatch. Do not impose this insane propsal onto the Forex community... Hundreds of
thousands of people would be extremely harmed by this action. I most certainly would be harmed. And it is true thousands if
not millions of traders would go off shore to Brokers that do accept higher leverage accounts.
Sincerely, Robert Hoffman
Dear Mr. Chairman: :3
I-!>
I am concerned, about a recent, proposal by the -omnl,0dity -'utures Tpldin,g Collllll iss ion (CFT~
that may have a severe ImpMt 011 fOl'ctgtl exchange tl'lldlllg (l'o\'cx) 11\ the United States.c::7')
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COMMENT
Chairman Gary Gensler
Commodity Putures Trading Commission
Three Lafayettc Ccntl'c
1155 21st Street, NW
Washington, DC 20581
On January 20, 2010, the Commission released a proposed rule to increasc regulation ofoff~
exchangc transactions in foreign currency with mcmbers of the retail public,
While I understand the importance of the proposed reglilations, such as capital requirements for
retail Forex dealers, reporting and disclosure requirements, and other pl'ovisions to combat fraudulent
practices in this sector of the Forex market, I believe one provision may do more harm than good if
promulgated -- the leverage rule.
The proposed rule would imposc a 10:1 limit on leverage that may beoffc.red to retail Forex
customers. I urn told this provision may result in many retail Forex trudingjobs moving offshore to
jurisdictions W'here regulators do not limit retail Forex leverage, and 200: I leverage is morc common.
Requiring I:1 higher margin on leveragcs for Forex would make the U.S. retail Forex market
uncompetitive, rf all developed-country regulators adopted common leverage requirements, the U,S.
industry might be able to remain competitive under such II rule, but absent such standardization, the
United States is at risk ofjosingjobs from this proposed regulatioll. Some 170 in Utah alone may be at
risk.
Perhaps more significant, the CFTC cannot adequately regulate rctnil r:orex trading if it moves
offshore. U.S. investors will likely still participate in these markets, but in venues where the CFTC has
no power to police trading practices. Thus, the proposed rule could make the CFTC less, not 1110re, able
to protect individual investors.
I encourage the Commodity Futures Trading COI11 mission to adopt rules that would strengthen the
standing of the FOl'ex markct without encouraging retailers to 1110ve abroad. I thank you for yoUl'
consideration.
Sincerely,
Orrin G. I-latch
United States Senator
