Comment Text:
i0-001
COMMENT
CL-08717
From:
Sent:
To:
Cc:
Subject:
Marj orie Miller
Saturday, March 20, 2010 8:12 PM
secretary
President Barack Obama ;
[email protected]; contact@wexlerforcongress, corn;
[email protected]; [email protected]; [email protected];
lloyd, [email protected]; [email protected];
[email protected]; [email protected]; Kay Bailey
Hutchison ; Rep Michael McCaul
No hedging, bad leverage, no segregation of Funds: Why would anyone do Forex
in the US instead of the UK?
Re: R1N 3038-AC61
Mr Chairman,
Let me say first that I think it is ironic that US citizens are moving their money to the UK to escape
the incompetent US regu-dictators, who jerk people around for a year about the right to hedge and
leverage, and don't even bother requiring segregated funds like the UK. Perhaps the US still has alot to
learn from the UK.
Let me then say, that besides being jerked around by the CFTCiNFA on whether I should have the
fight to hedge, and then the 100:1 leverage restriction, and now the 10:1 leverage restriction, I refer you
to the attached link below, dated in 2007 even, for another reason to not do FX trading in the US.
Apparently, my funds aren't even safe in the US. In the UK they are segregated, and even guaranteed up
to 30000 pounds at the brokerage and 50,000 pounds at the bank. Broker funds in the US aren't even
guaranteed. What a joke. I've already moved 3 accounts to the UK, when hedging was outlawed in the
US in 2009, and I will now be moving my other 3 accounts to the UK as well. Great job destroying yet
another segment of the US economy. Will the US Retail Forex industry now get a bailout to revive what
the CFTCiNFA has destroyed?
Lastly, I'm sending a copy of this to President Obama who is apparently your boss, and I'd like to ask
him where he'd rather do business, and why we don't have segregated funds rules in the US, and why
we've got morons like you telling intelligent people whether they can hedge and how much leverage
they can use. Ever think of asking about the security of their funds? You're a waste of taxpayer money.
Hire someone from England. Everybody else is. Why don't you just look at the UK FSA rules and try to
copy them and you won't look like such morons.
Marj orie Miller
In US, REFCO uses investors funds to pay off bankruptcy creditors - no segregation of client investment
funds
http ://www.robbooker. com/special/
FSA Segregation of Funds regulations
see http ://www.financial-spread-betting. com/Segregation-bankrupt.html
All the reasons not to do Forex in the USi0-001
COMMENT
CL-08717
http ://www. fxcm.com/segregated-accounts-news-release.j sp
About FXCM
FXCM Holdings, LLC: News Release
FXCM Offers Segregated Forex Accounts Through FXCM LTD
New York, July 25, 2007 (Revised on November 9, 2009)--The FXCM Group announced that accounts
with Forex Capital Markets, LTD (FXCM UK) are segregated in accordance with FSA Client money
rules.
FXCM UK accepts accounts from the United States and over 100 countries.
In the unlikely event of FXCM UK's bankruptcy, clients of FXCM UK would be considered secured
creditors and receive priority in bankruptcy proceedings.
FXCM Holdings, LLC is offering this option through FXCM UK because funds held by US-registered
Forex Dealer Members are not segregated. If a Forex Dealer Member becomes insolvent, clients do not
automatically receive priority status in bankruptcy proceedings.
Recently, a U. S.-registered forex broker went into receivership due to undercapitalization. For a period
of time, clients of the broker were unable to access their funds and faced the possibility of financial
losses. This situation may recur because current capital requirements for US-registered forex brokers are
minimal.
FXCM is financially strong, with reserves that far exceed regulatory requirements. The FXCM Group
has over $120,000,000 in firm capital (assets minus liabilities).*
Drew Niv, Chief Executive Officer of the global currency trading firm, pointed out several features of
the FXCM UK segregated account:
Forex regulations in the UK differ from the ones in the United States;
FXCM UK is now accepting accounts from over 100 countries, including the United States;
The Financial Services Authority (FSA), one of the world's most respected financial regulatory
bodies, administers these regulations;
Opening an account is quick and easy: Applications may be submitted online.
Drew Niv stated, "FXCM is offering segregated funds through FXCM LTD as an additional value to our
clients. While FXCM is one of the largest U. S.-registered Forex Dealer Members, we still want to
provide our clients with additional legal protections for those who want their funds segregated."
"Many forex firms are teetering on the brink of bankruptcy; FXCM is strong. We believe that it is vitally
important that all currency trading clients have complete and verified information on the financial
strength of forex trading firms. That is why FXCM has taken the maj or step of making our balance sheet
public, and challenged other firms in the industry to follow our lead," said Niv.
