CALL TO ACTION: CFTC 10:1 - Share what you wrote here

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AsstModerator

FPA Forums and Reviews Admin
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If you haven't read the article about the consequences of the new CFTC 10:1 leverage limits, please read it now...

http://www.forexpeacearmy.com/forex...f-cftc-does-say-goodbye-retail-forex-usa.html

If you have or are thinking of opening an account at any forex broker in the USA, I want you to write a letter.

If the USA does this, it is possible that other countries might do the same. Even if you aren't ever planning to open an account at a US forex broker, you can still tell them that this rule will ruin retail forex.

Here's the contact information and instructions from the article...

What to do

It's not a law yet. There's still time to complaint and try to stop this.

Before I tell you where to complain, be aware: All comments sent to the CFTC on this topic will be very public. Ranting about government conspiracies won't help. Typing profanity IN ALL CAPS is very tempting in this case, but it won't help. Ten well worded individual letters will carry more weight than 100 copied and pasted letters or even a single petition with hundreds of signatures. I would be honored if you do quote some of this article and/or include a link to it in your complaint, but please also express your feelings in your own words too.

According to the rather lengthy (193 pages) document detailing these proposed rules, this is how to complain:


You may submit comments, identified by RIN 3038-AC61, by any of the following methods:
• Federal eRulemaking Portal: http://www.regulations.gov/search/index.jsp. Follow the instructions for submitting comments.
• E-mail: secretary@www.cftc.gov. Include “Regulation of Retail Forex” in the subject line of the message.
• Fax: (202) 418-5521.
• Mail: Send to David Stawick, Secretary, Commodity Futures Trading Commission, 1155 21st Street, N.W., Washington, DC 20581.
• Courier: Same as Mail above.
All comments received will be posted without change to U.S. Commodity Futures Trading Commission, including any personal information provided.


Please, write something and submit it. Even a few sentences. Focus on what that 10:1 rule will do to your trading. Tell them how much money you may move to an offshore broker. Tell them they are costing jobs. Tell them the really good rules closing registration loopholes won't matter so much if there aren't any US forex businesses left to register.
I'd like as many FPA members as possible to write in. Please share what you wrote in this thread. It may give other members ideas about what to write.

Don't copy other letters, but go ahead and use them for ideas to help you write your own.

If you've gotten emails from brokers or other forex groups, please click here and share them.

.
 
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AsstModerator

FPA Forums and Reviews Admin
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5,576
From MBT

This one was sent in by Steve L, who is a client of MB Trading...

Dear MB Trading FX Client,
On January 13, 2010, the CFTC announced proposed new regulations concerning retail foreign currency transactions. Many of the proposed changes would implement important consumer protection regulations, which MB Trading firmly favors. However, one of the proposed changes would radically lower Forex leverage from 100:1 to 10:1 for all NFA and CFTC regulated Forex firms.
Under the proposed rule, here are some examples based on trading 10,000 USD:
Currency Pair Current Margin Requirements* Proposed Margin Requirements
EUR/USD $142 $1,420
GBP/USD $163 $1,630
USD/JPY $100 $1,000
*Current margin requirements based on rates as of January 19th, 2010
The impact of these new requirements for a FOREX trader could be significant. Under existing rules and based on present day exchange rates, a $10,000 account could buy or short just over 700,000 EURUSD. With the new proposed rule, the same account would only be able to buy or short 70,000 EURUSD, significantly impacting the results of the trade.
MB Trading recognizes the importance of regulation that strengthens industry oversight. We agree with policing and regulating the industry, as was Congress' intent when empowering the CFTC to create additional rules. However, we don't agree with policies that might clearly disadvantage firms in the United States which in turn disadvantage you, the client. We encourage you to voice your individual opinion directly to the CFTC. The Public Comment Period is open for 60 days from the date of publication, which was January 13, 2010. You may find the entire draft proposal here: www.CFTC.Gov and you may contact the CFTC directly by sending an email to secretary@www.cftc.gov with "Regulation of Retail Forex" in the subject line.
Thank you for your support.
Ross Ditlove
CEO
MB Trading
 
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AsstModerator

FPA Forums and Reviews Admin
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5,576
Steve L emailed me a copy of what he just sent to the CFTC...

Hello,

I am very concerned about the proposal to increase the margin requirements for Retail Forex, for more than one reason.

First, on the personal level, I have been training for a year to be a trader. I am about to launch my trading business as a corporation.

A new regulation like this would severely limit my ability to grow my trading account.

I am 60 years old, my retirement savings are not going to last a lifetime.

Yet, now after this year of intense study and training I am confident I know how to manage the realities of leverage and loss control. I am confident I can do this and do well.

What alternatives do I have? Even though I am smart and technically skilled, no one is going to hire me at my age.

And, I am not alone...there are likely hundreds of thousands like me in my age group with no employment future....and probably millions of younger Americans who will be unemployed or underemployed for a long time. The jobs shipped to India (tech jobs) or China (manufacturing) are not going to come back.

In response to this, many, many US Citizens are learning to trade. Some are going to do well, if you don't change the regulations. There is an infrastructure being built out now in the educational and brokerage firms, and even the banks, that are preparing to serve this new demand. Please take a look at this. It is not small.

Those people who are suited for the career of trading, allowing themselves to become well prepared, practiced, and trained, will have self created jobs, they will be paying local taxes, and Federal taxes. They won't need unemployment, and they have money to spend in their local economies. Not only that, they can work from home, creating less demand for oil, and less traffic.

(Not everyone will have an aptitude for this work...but many will.)

The use of leverage in the Forex retail market is a beneficial thing to a person with the right skills to use it. It is not like giving a mortgage to someone who has no money. And, it is not the same as the leverage created by the Investment Banks that caused the financial system to almost collapse. It is not the same dynamic, and its scope is very small. Please don't make the mistake of seeing all leverage as evil. The leverage in the Forex market, if used wisely, allows a well trained individual to create an income for himself, and his family, without relying on the external job market, and without the need to have a million dollars to invest.

BUT, beyond that...there is now an infrastructure being built in the US to serve the retail Forex trader. If you implement the higher margin requirements, first this infrastructure and all the jobs that it is creating, is about to create, and will be creating, and all the tax revenue that goes with the business income, and those jobs, is going to disappear. It will never form.

Instead it will grow outside your jurisdiction. You will be giving all the transaction business to London or Switzerland, or even in the future, to Hong Kong or Singapore. Or Australia or New Zealand....I'm sure they would love to have the business. The only limitation is how they can access the fastest internet backbones.

There are already very good, highly regulated Swiss Forex brokers, more than willing to accept the US customers you would be pushing away. The same for London.

(By the way, London probably has more Forex transactions than the USA in any given day. The US is the second market.)

If the US Forex Retail Trader moves his accounts to London or Zurich, that in turn would force US Retail Forex Brokers, if they wanted to stay in business, to move offshore outside your regulation, taking the jobs with them, and the payroll tax revenue, if not more.

You have a tremendous opportunity here to allow the formation of a new industry in the United States....one where well trained individuals (i.e. "taxpayers") can participate in the truly massive and dynamic world's currency markets, having equal access as the worlds largest banks. This type of access is relatively new...with a new type of Retail Forex Broker building out the infrastructure and creating a base for secure and integrous transactions required by the Forex trader.

Really, I cannot see any positive outcome for our country, if these regulations are implemented.

Actually I would suggest the opposite....keep the margin requirements as they are, and institute college level trainings for a person to enter the self-employed trading profession, so, if they are capable, can compete against the giants with success. The tax system and local economies will thank you.

Thank you.
 

AndesOwl

Recruit
Messages
3
Regulation of Retail Forex

Sir or Madam

RIN 3038-AC61

Over-regulation stiffles business and the rules you brought in last year drove thousands of American investers to use offshore companies at the expense of American Forex Dealers. Your new regulation of 10:1 leverage will exacerbate this. The consequences will be a loss of jobs to Americans and a deterioration of the American way of life.

America is already suffering from a massive increase in Government, Government spending and Government regulation and is now well on it's way to becoming a communist state. Your new regulations will only speed this process up.

The voting public of Massechusetts yesterday clearly indicate that "We the People" have lost confidence in the present Government and your new regulations will only add to this by further eroding their "Freedom of choice".

One can only conclude that you are sociopaths, pathological narcissists, control freaks or complete idiots and the consequence of your present Government's actions and over-regulation will eventually drive states leaving the union or another American revolution. Ultimately, you are cutting your own throats at the expense of the public and driving money out of the USA.

I have been advising my American Forex trader friends to leave the country and settle elsewhere since 20 January 2009. Those with the funds to do so are already leaving because the future for America is becoming bleaker by the moment.

God help America
 

jgmp18

Recruit
Messages
1
My Broker's Comments regarding CFTC proposal

Please find below my broker's comment on that CFTC proposal:
Dear MB Trading FX Client,

On January 13, 2010, the CFTC announced proposed new regulations concerning retail foreign currency transactions. Many of the proposed changes would implement important consumer protection regulations, which MB Trading firmly favors. However, one of the proposed changes would radically lower Forex leverage from 100:1 to 10:1 for all NFA and CFTC regulated Forex firms.

Under the proposed rule, here are some examples based on trading 10,000 USD:

Currency Pair Current Margin Requirements* Proposed Margin Requirements
EUR/USD $142 $1,420
GBP/USD $163 $1,630
USD/JPY $100 $1,000

*Current margin requirements based on rates as of January 19th, 2010

The impact of these new requirements for a FOREX trader could be significant. Under existing rules and based on present day exchange rates, a $10,000 account could buy or short just over 700,000 EURUSD. With the new proposed rule, the same account would only be able to buy or short 70,000 EURUSD, significantly impacting the results of the trade.

MB Trading recognizes the importance of regulation that strengthens industry oversight. We agree with policing and regulating the industry, as was Congress' intent when empowering the CFTC to create additional rules. However, we don't agree with policies that might clearly disadvantage firms in the United States which in turn disadvantage you, the client. We encourage you to voice your individual opinion directly to the CFTC. The Public Comment Period is open for 60 days from the date of publication, which was January 13, 2010. You may find the entire draft proposal here: www.CFTC.Gov and you may contact the CFTC directly by sending an email to secretary@www.cftc.gov with "Regulation of Retail Forex" in the subject line.

Thank you for your support.

Ross Ditlove
CEO
MB Trading
 
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alvin050

Private, 1st Class
Messages
62
Sent to CFTC on 21 Jan

Dear Sir

RIN 3038-AC61

Extract from CFTC proposed regulation:
"leverage in retail forex customer accounts would be subject to a 10-to-1 limitation,"

As a retail forex trader, I find the above proposal extremely intrusive and unnecessary. 2 things came to my mind when I read the proposal.

1) Kill retail forex market = Protect US futures market
Please don't insult the intelligence of the retail investor community by denying the above. I sincerely hope the US will not adopt this high-handed attitude in dealing with other international trade issues. A better alternative would be to boost both markets through regulations which truly protect all types of investors. Perhaps both markets could offer different trading terms and conditions to cater to different types of investors.

2) Tremendous increase in risk to the retail investor
Under your proposal, 90% of retail forex investors would be eliminated immediately. The remaining 10% more highly-capitalised investors would have to greatly increase the funding of their trading accounts. This would expose them to higher risk of massive losses. As everyone knows, the greatest bane of retail forex is the predatory nature of forex brokers, and occasionally, their tendency to disappear/fail together with the customers' funds, irregardless of whether they are regulated by NFA, CFTC or whatnot.

I am sure your proposal will attact great interest from the forex community. Please take our feedback seriously, afterall, your purpose is to serve us, and not to sever us.


Regards
A Yap
Singapore
 

evroom1

Private
Messages
20
good bye job

Sirs It has come to my attention via an article http://www.forexpeacearmy.com/forex...f-cftc-does-say-goodbye-retail-forex-usa.html that their are certain new regulations being considered for the Forex industry. Release: 5772-10 For Release: January 13, 2010

Some parts are fine but only the parts that protect US retail investors. This bill will have the effect of driving out of business many good medium and small brokers. Also changing the leverage to a 10 to 1 limit will put most small investors out of business or move their money out of the country. It is clear to me the persons who put this proposal together do not have a clue about trading. I can only imagine how many US jobs will be lost this. At a time when it very hard to find a job, trading is one of those businesses that one can start up with without alot of capital. I for one cannot get a "regular" job and this line of work allows me to have my own business. Please do not take it away from me with ill thought out restrictions. We may need protection from some bad brokers but we do not need you to protect us from ourselves.

Thank you your time

Ernie Vroom
xxxxxxxxxxxx
Sarasota Fl.
 

JAIME TOSCANO

Private, 1st Class
Messages
44
Message sent to CFTC

Att´n to Mr. David Stawick, Secretary Commodity
Futures Trading Commision 1155 21st Street, N.W.,
Washington, DC 20581

Dear Sir,

my name is Jaime Toscano. I am Mexican and live in my countrhy or origin.
I have several Forex accounts in various countries around the world, including the United Kindgon, Switzerland, Cypruss, Panama and the United States of America.
The account I have in the U.S.A. is held by IBFX (Interbank FX), acct# XXXXXXX in ase you wish to verify it)

I have learned that it is the FTC´s intention to change the maximum leverage for Forex Retail Services to 10:1 and it is for this reason that I am sending this message.


My trading strategy requires a leverage of at least 100:1, which means that if this initiative gets approved I will no longer be able to trade using the same strategy with IBFX, and I will move my funds to another country. I assume many traders will do the same thing if the initiative becomes law, with the subsequent impacts on the economy and the creation of jobs within the U.S.

I want to thank you in advance for the attention paid to this messge.

Please feel free to contact me if you have any questions or comments.

Best Regards,

Jaime Toscano
My phone number: +XX XX XXXX XXXX (office phone, daytime only)
 

chopperdave

Recruit
Messages
2
The Saftey Police are out!!!

Some FX dealers are already REFUSING to accept new US accounts...FXPRO stated: At this time, FX PRO is not accepting any new US accounts. FX PRO wants to focus on its Euro and Emerging Market clientel (i.e. China). If you want to make any money, I would seriously consider moving your account sooner than later!

-Chopper Dave :mad:

Here is what FX Solutions sent me:

Dear FX Solutions Customer,

Recently, the U.S. Commodity Futures Trading Commission (CFTC) announced that it is seeking public comment on proposed regulations concerning Forex trading. In part, the proposed regulations states:


“to collect security deposits in a minimum amount in order to prudentially limit the leverage available to their retail customers on such transactions at 10 to 1”

This means that leverage limits will be reduced from current limits of 100:1 to 10:1 for all Forex trading in the U.S. Below is an example of how the proposed leverage reduction would affect your Forex trading account.




FX Solutions is a proud registrant of the CFTC and member of the NFA and we will continue to cooperate with the CFTC and NFA in their efforts to eliminate fraud and deception within the Forex Market. However, we believe that you should be given the freedom to choose the appropriate amount of leverage for your individual trading style and risk tolerance.

If you feel strongly about the proposal, we urge you to submit your comments directly to the CFTC. In order to ensure that your voice is heard, please send your comments to the CFTC by March 22, 2010 and be sure to include “Regulation of Retail Forex” in the subject line and identification number RIN 3038-AC61 in the body of your message.

You can contact the CFTC through any of the following methods:

Email: secretary@www.cftc.gov
Fax: (202) 418-5521
Mail: David Stawick,
Secretary, Commodity Futures Trading Commission,
1155 21st Street, NW,
Washington, DC 20581
Web: Federal eRulemaking Portal

FX Solutions is currently reviewing these proposed rules and along with the U.S. Forex Dealer Coalition will publish our opinion in the coming days. For more details on the proposed regulation visit the CFTC.

FX Solutions is a global Forex company which is committed to providing our clients with the utmost in transparency and client service. Our clients have the option to open accounts in either the UK or Australia which offer flexible leverage and are not impacted by CFTC rules. For information about FX Solutions regulated outside the United States, please visit Trading with Higher Leverage or contact Customer Service.


Sincerely,
FX Solutions


http://links.mkt1422.com/servlet/Ma...&r=NDE2NzQ1NzE0NwS2&j=NjQ3Mjk1NjUS1&mt=1&rt=0
 
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Pedro Rivas

Private
Messages
9
Interbank FX email

CFTC's Proposal of Leverage Changes: How You Can Help‏

Dear Valued Customer,

As many of you are aware, the U.S. Commodity Futures Trading Commission (CFTC) announced on January 13, 2010 that it is seeking public comment on proposed regulations concerning retail Forex trading.

As part of the proposed regulations, it is stated: "leverage in retail forex customer accounts would be subject to a 10-to-1 limitation," which means 10:1 leverage would be the maximum amount allowed for all Forex traders in the U.S.

An example of how the proposed regulatory restrictions would affect a major currency pair appears below:

Maximum Leverage under Current Regulations
USD/CHF
100:1 leverage (one percent)
1 lot (100,000)
Margin requirement: $1,000

Maximum Leverage under Proposed CFTC Changes
USD/CHF
10:1 leverage (10 percent)
Margin requirement: $10,000

We stand behind the belief that you should be given the freedom and right to choose the amount of leverage that is appropriate for your individual desired risk, and that this basic principle of 'choice' is in jeopardy by the proposed CFTC regulations.

If you feel strongly about the proposal, we encourage you to help determine the outcome of these proposed regulations. You can help make an impact by sending comments directly to the CFTC at: secretary@www.cftc.gov.

Please include 'Regulation of Retail Forex' in the subject line of your message and the identification number RIN 3038-AC61 in the body of the message.

You can also submit your comments by any of the following methods (include above ID number):

Fax: (202) 418-5521
Mail: David Stawick, Secretary Commodity
Futures Trading Commision 1155 21st Street, N.W.,
Washington, DC 20581
Courier: Use the same as mail above.
In the upcoming days, Interbank FX and the rest of the U.S. Forex Dealer Coalition will be releasing a more formal opinion about the proposed changes. Please feel free to read further details about the regulation on the CFTC website by clicking here. In the interim, we encourage you to voice your opinions to the CFTC and your local U.S. representative.

As always, we want the best for our traders. We hope you’ll join forces with us to prohibit the proposed leverage requirements.

The Interbank FX Team
 
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