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

[jtfx]

Dear Sir/Madam,

I dont need to write any elaborate or eloquent reasons against the proposed 10:1 Leverage; others before me had done so already.

I would be blunt and simple: "Implement 10:1 leverage and I take my business away from NFA/CFTC brokers." I believe many traders will do just that as well.

 

[habu]

message from interbank fx

Here is the message I got from Interbankfx regarding the upcoming rule change:
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 Maximum Leverage under Proposed CFTC Changes
USD/CHF USD/CHF
100:1 leverage (one percent) 10:1 leverage (10 percent)
1 lot (100,000) 1 lot (100,000)
Margin requirement: $1,000 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

 

[Martinigue]

Cui bono?

as I am sure those responsible are very well aware of the possible consequencies, the real question is: why would they want the retailers out of the ( US) market ...

 

[fxfool]

new forex regulations

Thanks for keeping us up to date on what is happening in the forex market. I sent a letter to the secretary concerning the new regulations. My letter writing skills are suspect, but hopefully I got the point across.

I think it is critical for all us traders to stick together and do our part to show we will not quietly accept regulations which we hurt all US traders and companies.

Thanks once again. You guys are great and the best.

 

[Pierre le Roux]

Regulation of Retail Forex

Sir,
It was with great disappointment that I learned about your proposed new regulations which would enable CFTC to apply a limitation of 10:1 leverage on forex trading accounts.
I am in my late sixties and of neccessity needs to supplement my retirement income.
I trained for a year to become a competent forex trader and have traded successfully for a considerable period of time, using a small amount of my capital.
Now that I am ready to fully capitalise a trading account, I have started the apllication procedure for an account with a US broker.
As I am not a US citizen the formalities, fortunately, took some time to complete.
With the above limitation on my trading I shall not be able to trade with success and am now applying for an account with a broker elsewhere.
If it is your aim to protect people from the high risk of forex trading, rather introduce formalised training where the student can learn the proper skills.
Thank you,
P. le Roux.

 

[Dollar-Reaper]

Copy of what I sent the USCFTC

The US Commodity Futures Trading Commission,

Re: RIN 3038-AC61

I am an offshore forex dealer who has been using the US as trading platform; I also trade in the UK, but mostly in the US.

The recent financial meltdown has been a bad experience for the US; I can understand that, I can also understand where financial institutions get to big to let them fail, and the problems that are faced when they start to fail.

Traders like myself, and there must be several hundred of thousand of us worldwide, were not affected as severely as most the other sectors of the economy, by the financial meltdown, mainly because we are traders not gamblers. For us markets go up and markets go down, that is normal and we have contingencies in place to counter sudden and unexpected market moves against us.

Changing the margin requirements on retail forex, will literally put half us retail traders out of business, the rest who work the UK and Eastern markets might carry on. Retail traders never need to be bailed out, and we work sensibly within our area of expertise using our own capital.

There may be issues in the wholesale banking market, but not in the retail future market as the funding dynamics are totally different. Retail traders are trading to make a living using their own capital; we are not risk trading to produce huge profits to satisfy greedy corporate shareholders or to meet corporate financial agenda’s.

All of the retail traders I know are middle aged, self-funded, and professional in their approach to the industry. None of us, not even if grouped as an investment community, do we in any way create a risk to regional, national or global finance. If anything we do our fair share to uphold sensible trading practices, after-all it is our own capital that we trade with and need to protect.

I can understand that there will be an element of over reaction to the crisis created by wholesale institutions like banks in sub-prime and other risky investments. Wiping out the retail traders by over-regulating and increasing the retail margin requirements is not the answer or even part of the answer.

Tens of thousands of people who will be deprived of their living in the US, and others forced to start trading in other parts of the world, the resultant out-flow of trading capital, and the loss of local taxes, and lost jobs does not sound like the right solution.

This is an appeal to the Commission to consider the dire impact of such changes on a sector that is posing no future risks to the economy, and the effect it will have on the lives of so many trades, most of whom are, like myself, professional, committed, and using our own funds. All of us derive our income from trading, and are well past re-employment age.

Yours faithfully

xxxxxxxxxxxxxxxxxx
Retail Forex Trader

 

[moneytalks101]

Profiles of CFTC commissioners on position limits

Profiles of CFTC commissioners on position limits:
FACTBOX-Profiles of CFTC commissioners on position limits | Reuters

WASHINGTON, Jan 19 (Reuters) - The U.S. Commodity Futures
Trading Commission last week released its long-awaited proposal
to curb speculation in energy futures markets, but several of
its top officials expressed reservations that could make it
harder for the regulatory agency to finalize its plan. The measure is the first major regulatory reform for the
top U.S. futures market regulator, led by Chairman Gary
Gensler. [ID:nN14189109] Gensler, a Democrat, is one of five CFTC commissioners
appointed by the president. [ID:nN14156602] The commissioners
have released the plan for public comment, but must vote again
for the proposal to become final. [ID:nLDE60E12M] Here are profiles of the other four commissioners.
MICHAEL DUNN
JILL SOMMERS
BART CHILTON
SCOTT O'MALIA

 

[Kittu]

From ME
to secretary@www.cftc.gov
date Sat, Jan 23, 2010 at 11:26 PM
subject Regulation of Retail Forex
hide details 11:26 PM (0 minutes ago)

Dear Mr Stawick,

My name is XXXX XXXX and I am a Money Manager by my profession. I operate out of India and have clients all over the world. I primarily trade in Forex market and most of my clients are retail customers with a couple of thousand dollars. Currently, I have placed all of my client funds(in excess of US$250K) with two of the largest brokers in US: Oanda and MB Trading. I am writing this mail to you to express my deep concern over the proposed capping of the leverage on retail Forex accounts to 10:1.

We, are responsible Forex traders and know what we are doing when we trade forex. A good leverage is like a necessary evil in the market, just like Friction(if you understand that much of Physics). Without proper leverage, the retail Forex market will die in US. I dont mean to sound rude here, but we all know that Americans already blame us Asians of taking away your jobs and with the proposed regulations coming into play, you will not be helping the cause of Americans. There will be plenty of brokers that would have to shut down because retail forex would no more be available. Tomorrow, will you support dilution of Rat poison in the market because few idiots commit suicide every day consuming it? Or would you advocate a move to make all the knives in the market less sharp because they slit a lot many throats every year?

I fail to understand, what exactly are you concerned about? You are not protecting any individual or retail investor by passing such regulations. Over regulation converts a capitalist system into atrocious and orthodox system and I am afraid, thats what precisely is happening now.

Mr Stawick, this work is bread and butter for me and acts as a source of some additional part time income for many of my clients. I cant afford to stop this work/business at any cost. I have a family to support and kids to grow. With the enactment of the proposed rules as Laws, I will be left with no option but to pull the money out of US brokers and park the same to some UK and Asian brokers, who continue to support retail forex trading. My fund account size of $250K might not sound too big to you, but let me tell you that every time I make a trade on that money, some commission is earned by my US brokers, which in turn fund salaries of your citizens.

There is a very popular saying in my part of the world in Hindi which goes like this: "Boond boond se sagar bharta hai", which means "Every drop fills the ocean". Me moving my client funds in tune of a couple of hundred thousand dollars out of US broker might not sound a threat for the industry to you, but I can very well assure, the cumulative effect of the same will be disastrous to the retail Forex industry in US.

And at last, just to tell you, I have already initiated the process of transferring my funds from US brokers to brokers based in UK and Switzerland. I cant take this risk on my livelihood being at the mercy of some short sighted decision makers sitting at the top of US regulatory authorities.

Dont ignore the early warnings...Dont take them lightly.

Best Regards
XXXXXX

 

[wadesworld]

Fpa Rocks!!!!!

IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.--Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government.



I Think its time to GUARD MY FUTURE SECURITY.

This Letter is a Formal Complaint to recent proposed regulations restricting Pricing Leverages.

Wade Vinson,

Texas.

 

[jhmalnowski]

Forex.com mail out

FOREX.com

Dear Customer,

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, "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 forex traders in the U.S.

HOW WOULD THE PROPOSED CHANGE AFFECT YOU?

Max leverage under current regulations Max leverage under proposed changes
USD/JPY USD/JPY
100:1 leverage (one percent) 10:1 leverage (10 percent)
1 lot (100,000) 1 lot (100,000)
Margin requirement: $1,000 Margin requirement: $10,000

We believe that all traders should have the right to choose the amount of leverage that is appropriate for his/her risk appetite, and that this basic principle of 'choice' is being threatened by the proposed CFTC regulations.

Should you feel strongly about the proposal, there is still time for you to help determine the outcome of these proposed regulations. You can 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 Commission
1155 21st Street, N.W.,
Washington, DC 20581
* Courier: Use the same as mail above.

In the next few days, FOREX.com and the rest of the U.S. forex industry will be releasing a more formal opinion about the proposed changes. If you wish, you can read further details about the regulation on the CFTC website by clicking here.

In the meantime, we encourage you to voice your opinions to the CFTC and your local U.S. representative.

As always, we thank you for your business.

Customer support seven days a week
24 hours a day from 10am Sunday to 5pm Friday
Saturday from 9am-5pm ET Toll-free: 1.877.FOREXGO (877.367.3946)
Int'l: 1.908.731.0750
Email: support@forex.com


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