Comment Text:
i0-001
COMMENT
CL-08296
From:
Sent:
To:
Subject:
Norm Packham
Wednesday, March 17, 2010 7:33 PM
secretary
Regulation of Retail Forex
Secretary CFTC
Re: id # RIN 3038-AC61
It would appear that you are proposing to use a large 12 Ib canon ball to kill a gnat.
I have been trading Forex for over three years and have not had any problem with the present 100:1 leverage.
Norm
[email protected]
TAKE ACTION- TIME IS RUNNING OUT!
Recently, the U.S. Commodity Futures Trading Commission (CFTC) announced that it is seeking public
comment on proposed regulations concerning Forex trading.
WHAT ARE THE PROPOSED CHANGES?
¯ Require retail foreign exchange dealers to limit the leverage available to their retail customers to 10 to
1.
Below is an example of how the proposed leverage reduction would affect your Forex trading account.
Sell Pdce
$109.47
:S~:.II ~rica
$tO9,47
¯ Require all retail Forex industry players, including Introducing Brokers, to register with the CFTC.
¯ Implement a $20 million minimum net capital standard, with an additional volume-based minimum
capital threshold.
HOW WILL THESE CHANGES AFFECT FOREX TRADERS AND THE AMERICAN
ECONOMY?
Should the 10 to 1 leverage rule proposed by the CFTC be adopted:i0-001
COMMENT
CL-08296
¯ Funded accounts currently in the U.S. system can be expected to go offshore.
¯ Forex fraud may worsen, not improve. Unregulated dealers from around the world will thrive, while
operating
without requirements for capital adequacy, risk management models, marketing ethics, dealing
practices or
even returning of customers funds.
¯ The United States may cost itself millions of dollars in trade revenue.
¯ Thousands of white collar jobs that require an advanced education and range from software developers
to
accountants to foreign exchange dealers may be eliminated, or move out of the United States.
