Comment Text:
i0-001
COMMENT
CL-08919
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[email protected]
Monday, March 22, 2010 11:09 PM
secretary
Public Submission for 2010-00456
Public Submission for 2010-00456.zip
Please refer to the attached file.39. ntv.txt
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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 Ted
last_name Peterson
address1 2106 Park De ville PL.
city columbia
country united states
us_state MO
zip 65203
company na
Dear CFTC:
Please do not adopt the 10 to 1 leverage rule for retail foreign exchange.
--This will make it harder for me to diversify my balance across
different brokers.
--This will make it harder for me to diversify my risk across multiple trades.
--This will either force traders into more illiquid forex futures or
unregulated overseas brokers.
--New traders will lose more money just to learn the ropes.
--Forex futures aren't subject to this rule. why is that?
--why is FINRA and the CFTC trying to enact regulation that oversteps the NFA? How
much experience do you have making retail forex regulations like this, really? so
far, recent CFTC regulation has been sensible, making spot forex more like futures,
but this rule doesn't make sense.
--This regulation wouldn't protect against fraud in the least.
--The only parties that benefit are big forex banks, who wouldn't be subject to the
10 to 1 leverage rule. And the CFTC of course benefits, taking a small cut of every
futures transaction.
--why do you have to go and change everything for the 8 million strong retail forex
market? ?u.s. banks and firms are the ones who are over-leveraged, so why pick on
small retail traders, which comprise 2% of the entire forex market? ?Don't retail
traders still play a useful role?
--Finally: ?Leverage doesn't equal risk. say I had 20 open trades, and risked an
aggregate of 2% total among the 20 positions. This rule means I'd have to put up 4x
more money. STP orders manage risk, not leverage, so what's the use of this rule? It
doesn't even make sense. Duh.
--where did the 10 to 1 and 4 to 1 number even come from?
Big U.S. banks are the ones over-leveraged by a factor of 7. If you're trying to
make a one-world currency, just do that, and stay out of the "over-regulation"
market. ?Reduced volatility will eventually make traders move to greener markets.
Page 1sincerely,
?Ted L. Peterson
39.ntv.txt
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