Comment Text:
i0-001
COMMENT
CL-08162
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[email protected]
Wednesday, March 17, 2010 10:43 AM
secretary
Public Submission for 2010-00456
Public Submission for 2010-00456.zip
Please refer to the attached file.Please Do Not Reply This Email.
Public Comments on Regulation of Off-Exchange Retail Foreign Exchange Transactions and
Intermediaries:
Title: Regulation of Off-Exchange Retail Foreign Exchange Transactions and Intermediaries
FR Document Number: 2010-00456
Legacy Document ID:
RIN: null
Publish Date: Wed Jan 20 00:00:00 EST 2010
Submitter Info:
first name
last name
address1
city
country
us state
zip 77
company
I favor the proposal that Forex Brokers be registered, regulated and maintain minimum capital
levels.
I favor limiting leverage extended by Brokers to retail customers at a level of 100:1 on major
currency pairs and 25:1 on non-major currency pairs.
I favor a requirement that retail customers maintain brokerage account balances in reserve
equal to twice the amount the customer has at risk, meaning for example, if a customer buys
a standard-lot EUR/USD contract (100,000) for $1,500 then the retail customer should have
a minimum additional $3,000 in non-risk reserve funds on deposit with the Broker. In other
words, to initiate (open) one contract of cost $1,500, a retail customer should have a
minimum of $4,500 on deposit before purchase.
I believe that retail customer deposit requirements should not in any case exceed 3-to-1,
meaning require no more than $4,500 in not-at-risk deposit with the Broker for every $1,500
at risk, i.e. $6000 account balance to open a $1,500 standard contract EUR/USD lot of
100,000.
Respectfully, Brian Crawford
