Comment Text:
10-002
COMMENT
CL-07798
From:
Sent:
To:
Subject:
[email protected]
Monday, February 15, 2010 2:15 PM
secretary
Do Not Adopt the 10 to 1 Margin Rule for Forex Retail Customers
Dear Sirs,
Please do not adopt the 10-to-1 margin rule for Forex retail customers.
If you are truly considering this change as an attempt to shield the consumer from risk, you will
accomplish that only in as much as you will drive consumers out of the market, thereby not
risking their money. As an devoted trader of Forex for the past 10 years, I can tell you that I
am well aware of the risks involved. Likewise, I think anyone trading for 2 days will well
understand the risks. The 10-to-1 margin rule will only make it more difficult for me, and others
to participate in the market.
The basic end-result of this rule change will be to move this market closer to where it was 20
years ago, where only the wealthy can participate and further hinder those who are trying to
accumulate wealth. There is the misconception out there that those with money are more
knowledgeable and better suited to participate in the markets, this belief has been viciously
destroyed by recent events, look at Madoff and his wealthy "knowledgeable" clients, Allen
Stanford, the leaders of Lehman Brothers, Goldman Sachs, and the other
wealthy "knowledgeable" business-persons. They have proven that the wealthy are not role
models for identifying, understanding, and dealing with risk.
There are plenty of regulations governing this, and other market. Governing agencies should
work to enforce the existing regulations rather than creating additional regulations that only
limit activity in the market. Enforcing the existing regulations will help reduce the risk to the
small investor by catching the wealthy "knowledgeable" person that attempts to manipulate the
market and cheat the other participants.
Sincerely,
Scott Guy
Minneapolis, Minnesota.
