Comment Text:
i0-001
COMMENT
CL-08572
From:
Sent:
To:
Subject:
Sharon Farina
Friday, March 19, 2010 1:54 AM
secretary
Regulation of Retail Forex
Dear Mr. David Stawick, Secretary, CTFC and ALL CFTC policymakers:
I am appalled to recently find out that buried deep within the Farm Bill of 2008 the CFTC has been given greater
regulatory authority over a wide range of derivatives, as well as regulating Retail Forex. Can you please explain to
me why a Farm Bill contains provisions for Retail Forex? Maybe it's time for the American public to wake up and
realize how the government really operates by railroading their agenda through unrelated bills.
I strongly oppose the proposed regulatory changes that reduce the current leverage from 100:1 to 10: 1, which is
currently in place by the NFA.
If this proposal passes, it would have an extreme negative impact across the United States as well as the world.
Retail Forex traders could no longer have their account with a broker within the US, because most do not have
enough capital to trade with 10:1 leverage. Instead, they would move their account overseas to countries with
much less regulations imposed on brokers, which also might have a negative impact, but they could receive the
same or better leverage and continue to trade. This in turn would also effect US brokers, who would either go out of
business or move overseas, which would mean losses of thousands of high level jobs to an economy that is already
suffering greatly with a high unemployment rate.
Forex traders do their homework before trading in a live account with great education that can be free or very
affordable, opening up a "demo" account to practice before going live. Once they open an account, the most they
can lose is the amount they've invested in it. On the other hand, investing in futures, one can lose a whole lot more
than an initial investment.
Thank you very much for your consideration of leaving the leverage where it currently is set.
Regards,
Sharon Farina
Sharon Farina
Dallas TX, 76040
[email protected]
