Comment Text:
i0-001
COMMENT
CL-01072
From:
Sent:
To:
Subject:
Ren Richardson
Wednesday, January 20, 2010 5:37 PM
secretary < secretary@ C FTC. g ov >
Regulation of Retail Forex
I am writing in response to the proposed CFTC regulations on retail FX trading, specifically on the
drastic reduction of leverage. While I understand the potential for misuse of leverage by
inexperienced traders/speculators, such potential exists in nearly all facets of investment and
should be addressed through adequate disclosure and education, not outright prohibition. Such
measures substantially hinder more experienced traders, especially those who make a living
through their trading. Furthermore, such restrictions do nothing to promote a more educated retail
market.
Leverage can and should be controlled through proper position sizing and risk management. If the
CFTC looks upon the retail FX market as the "rich idiot's" playground, then this regulation would
make sense. However, if the CFTC hopes that this market will mature within the US and gain
greater legitimacy, this regulation is ill-conceived. There are many of us who make our living within
this market. For retail FX to become a more secure environment for all investors, while preserving
its potential as a viable alternative asset class, the CFTC's focus should concentrate more heavily
on disclosure, transparency, and education than on removing the necessary tools of professionals.
Best regards,
Ren Richardson
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