10 to 1 You're done...

Yes another post about the new proposal in the US.

I know some people think this is fine and for some it may be, but if you notice these anti "little guy" rules getting more common and easier to pass it's because they are met with very little opposition.

That is why if you make money trading (part time or full time) and live in the US please take a moment to send an email to the CFTC otherwise who knows what new rule will force you to hang up your trading hat.

I am reposting this from the VSA thread here and it includes a small blurb for those of you that are unsure what to write in the email.


Sorry to do this here but I want to reach as many people as possible.

Please take a moment (If you reside in the US) to voice your disapproval of the new 1:10 Leverage proposal by the CFTC

Here is a form letter to use if you are uncertain what to say. I would suggest altering it slightly so they don't get hit with all the same emails.

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To whom it may concern,

I am a retail trader and I am strongly opposed to the 10:1 leverage proposal by the CFTC. This regulation/requirement will drive many of the "smaller guys" out of the markets entirely or to offshore (ie unregulated) brokers.

The liquidity provided by retail traders increase the efficiency of the markets. Removing them, or unfairly pricing them out of the markets will result in increased price volatility overall and decrease the efficiency of the markets which is bad for everyone.

Please reconsider this proposal.

Thank you

Sign Your Name Here

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Send it via email to : [email protected]
Use the subject line: Regulation of Retail Forex


It is very important that we get as many people as possible to email/complain about this new pending restriction. Please pass it along to a friend or post it at other forums (Forex related forums only) you are a member of.


I am also in the process setting up a virtual address and document service for people that would like to trade outside the US with a valid overseas (UK) address. FXPro has already stopped taking US customers and I fear many other brokers will do the same if the CFTC and NFA keep passing these stupid restrictions.

Thank you for your time and good luck trading. For those of you that hang in the chat I'll see you there.

It scares me what they are trying to do in the USA with smaller traders. Anti hedging (not that I hedge) and now this.

I understand online gambling is illegal in the USA. I wonder who made up that law? I'll bet (ironically) it wasn't somebody opposed to gambling.

I'm in the UK. We usually follow the USA. In this case (leverage) I hope we don't.

Link to document for forex rules proposal.

http://www.cftc.gov/ucm/groups/publi...esproposal.pdf

Additionally, the Proposal would amend existing regulations as needed to clarify their application to, and inclusion in, the new regulatory scheme for retail forex.
DATES: Comments must be received on or before [insert date 60 days from publication in FR].
ADDRESSES: 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: [email protected]. 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 http://www.cftc.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: For information regarding financial and related reporting requirements, contact: Thomas Smith, Chief Accountant and Deputy Director, Division of Clearing and Intermediary Oversight, 1155 21st Street, NW, Washington, DC 20581. Telephone number: 202-418-5495; facsimile number: 202-418-5547; and electronic mail: [email protected]. Jennifer Bauer, Special Counsel, Division of Clearing and Intermediary Oversight, Division of Clearing and Intermediary Oversight, 1155 21st Street, NW, Washington, DC 20581. Telephone number: 202-418-5472; facsimile number: 202-418-5547; and electronic mail: [email protected].
3
For all other information contact: William Penner, Deputy Director, Division of Clearing and Intermediary Oversight, 1155 21st Street, NW, Washington, DC 20581. Telephone number: 202-418-5450; facsimile number: 202-418-5547; and electronic mail: [email protected]. Christopher Cummings, Special Counsel, Division of Clearing and Intermediary Oversight, 1155 21st Street, NW, Washington, DC 20581. Telephone number (202) 418-5450; facsimile number: 202-418-5547; and electronic mail: [email protected].
Peter Sanchez, Special Counsel, Division of Clearing and Intermediary Oversight, 1155 21st Street, NW, Washington, DC 20581. Telephone number (202) 418-5450; facsimile number: 202-418-5547; and electronic mail: [email protected].

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When I find the wording I will post... It's 193 pages long!

Page 4-5

FCM.
The Proposal would also implement the $20 million minimum net capital standard established in the CRA for registering as an RFED or offering retail forex transactions as an FCM; propose an additional volume-based minimum capital threshold calculated on the amount an FCM or RFED owes as counterparty to retail forex transactions; and require RFEDs or FCMs engaging in retail forex transactions 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.

I am a strong conservative by nature so I am against almost all forms of regulation.

However, it should be important to note that from a mathematical standpoint, individuals who use higher leverage have been known to "self-destruct".

I think that retail traders should use less leverage, but I don't think that it should be regulated into happening.

But is the government stopping people when they walk into a casino or a crap game to ask if they can really afford to lose the money? Or stopping them buying a car they can't afford?

No, and they shouldn't be. Let people do what they want. I'm against the 10:1 regulation.

LOL. Look at the 126 page:

YOU SHOULD BE AWARE OF AND CAREFULLY CONSIDER THE FOLLOWING POINTS BEFORE DETERMINING WHETHER SUCH TRADING IS APPROPRIATE FOR YOU.
(1) TRADING IS NOT ON A REGULATED MARKET OR EXCHANGE – YOUR DEALER IS YOUR TRADING PARTNER WHICH IS A DIRECT CONFLICT OF INTEREST. BEFORE YOU ENGAGE IN ANY RETAIL FOREIGN EXCHANGE TRADING, YOU SHOULD CONFIRM THE REGISTRATION STATUS OF YOUR COUNTERPARTY.
The off-exchange foreign currency trading you are entering into is not conducted on an interbank market, nor is it conducted on a futures exchange subject to regulation as a designated contract market by the Commodity Futures Trading Commission. The foreign currency trades you transact are trades with the futures commission merchant or retail foreign exchange dealer as your counterparty. WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER. As a result, when you lose money trading, your dealer is making money on such trades, in addition to any fees, commissions, or spreads the dealer may charge.
(2) AN ELECTRONIC TRADING PLATFORM FOR RETAIL FOREIGN CURRENCY TRANSACTIONS IS NOT AN EXCHANGE. IT IS AN ELECTRONIC CONNECTION FOR ACCESSING YOUR DEALER. THE TERMS OF AVAILABILITY OF SUCH A PLATFORM ARE GOVERNED ONLY BY YOUR CONTRACT WITH YOUR DEALER.
Any trading platform that you may use to enter off-exchange foreign currency transactions is only connected to your futures commission merchant or retail foreign exchange dealer. You are accessing that trading platform only to transact with your dealer. You are not trading with any other entities or customers of the dealer by accessing such platform. The availability and operation of any such platform, including the consequences of the unavailability of the trading platform for any reason, is governed only by the terms of your account agreement with the dealer.
(3) YOUR DEPOSITS WITH THE DEALER HAVE NO REGULATORY PROTECTIONS.

In fact they have reason on this point...

Hey everyone. I just wanted to say that if you are thinking about sending comments to the cftc make sure that what you send is not a form letter. The cftc will only accept unique comments from individuals with verifiable contact information. Make sure if you send something it is in your own words.

Your comments are in the process of being added to the CFTC's website!!

Here is where you will find them:

http://www.cftc.gov/lawandregulation...10/10-001.html

Your link is broken.

This one should work: http://www.cftc.gov/lawandregulation...10/10-001.html

why just so few comments posted? Did CFTC delete other comments?

I thought the feedback from public will be overwhelming. hehe

I knew at least 7 fellow traders who wrote them, none of them got published so far...

Dictatorship and censorship are going hand in hand...

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http://www.myfxbook.com/members/pc8multifx

I think if they raise requirements ill switch to currency futures, i believe there requirements would be lower then the 10-1.

They only had 11 comments posted earlier this morning. Now it's up to 66. I just sent mine about 5 minutes ago.

They also must be starting to get pretty backed up, is what I'm thinking. The most current date on the emails is January 15th.

Now i get a "Page Not Found" message when I try this link ....

http://www.cftc.gov/lawandregulation...10/10-001.html

update: this one works...
http://www.cftc.gov/lawandregulation...10/10-001.html

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http://www.myfxbook.com/members/pc8multifx

a must read...

http://www.cftc.gov/ucm/groups/publi...10-001c062.pdf

respect goes to the ctfc, they had the nuts to publish it..

I think they liked this comment

But hey, it keeps these buggers busy with something to do. Who cares how it affects anyone else?

To be perfectly BLUNT........EVERY member of this site NEEDS to send a letter or email expressing their displeasure with these proposed changes.

The failure to do so could have the net effect of making YOU part of the silent majority; which if there is one, may be what allows this crazy overreaction to occur.

We all need make time over this weekend to put something in writing, no matter how short or to the point, expressing your displeasure.

As the old saying goes; "Those who do not vote lose the right to complain about the results."

Don't let this regulation pass and thus make your access to these markets all the more difficult.

For those with literary deficiencies, the first post in this thread provides a fine template to pattern your letter after.....cut and paste......easy! A small letter is better than nothing......should not take more than 5 minutes.....5 minutes to try and prevent something which could make most of our trading much more difficult and much less lucrative.


It's up to YOU to say something......DO IT!