Comment Text:
i0-001
COMMENT
CL-01045
From:
Sent:
To:
Subject:
Daniel Hicks
Wednesday, January 20, 2010 4:46 PM
secretary
Regulation of Retail Forex
Dear Secretary,
I'm an independent Foreign Exchange trader and understand that there is legislation being proposed
that will affect Foreign Exchange retail customers like me.
I'm certainly in favor of being protected from those that seek to take advantage of trading hopefuls;
those wanting to gain financial resources from the foreign exchange trade and I believe that proposal
RIN 3038-AC61 is a very sincere effort to protect US Citizens.
I'm happy to see language that seeks to regulate trading groups and require licensing of investment
advisors - similar to commodities - however I do not believe that the proposal to reduce 100:1 to
10:1 will have an affect on the fraud or purposeful mismanagement of funds by those unqualified to
manage large shared funds or those with actual criminal intent. The other proposals will have a much
greater affect on this problem.
Many independent traders like me have considered forex trading for a long time and have now been
recently forced into learning to independently trade as our source of future income and retirement
income. We are dependent on the leverage to make our lives productive and prosperous not only for
our immediate family but to be a positive contribution to our community and government as well.
Independent traders do not entrust their accounts to others with a hope and a prayer. We have spent
considerable time and resources into learning how to trade safely and consistently with the
immediate, intermediate and long term trends of the major currency pairs.
As I'm sure you are aware the Forex market by it's volume alone tends to make life difficult for
market makers and manipulators and therefore should have different considerations when applying
legislation to protect non-traders who entrust their accounts to others.
I guess what I'm trying to say as gracefully as possible is please do not punish true traders by the
10:1 proposal. There must be a more surgical way to apply regulations that will put a stop to criminal
behavior and unqualified fund managers.
Reducing leverage will force many successful independent traders out of the market and force them
to place their accounts back in the hands of the banks, those that are directly responsible for our
current global economic crisis and reduce the average US Citizens investment gains back to the
meager gains and profits that are controlled by the banks.
Please allow those who have the means and the desire to successfully trade independently to
continue to prosper from this global trading system.
Thank you for giving the opportunity for public input into this matter and any time that you may have
given to read this letter.
You are appreciated,
Daniel Hicks
