Comment Text:
10-002
COMMENT
CL-07849
From:
Sent:
To:
Subject:
Jeff Levi
Wednesday, March 10, 2010 1:58
PM
secretary
Regulation of Retail Forex
To whom it may concern:
I'm prompted to comment on the proposed regulation of retail forex,
because, try that I may, I can find no compelling reason to enact any
such regulation.
If your thesis is that it could curb excessive speculation, I can
assure you that as a retail forex client, I well know that you could
put every single retail forex trader on the planet on the same side of
a currency trade and it wouldn't do a thing to counteract the dealings
at the institutional level, let alone an irate (or determined) central
bank. Let me say that I learned first hand many years ago that is
unwise to try to trade against the Bank of Japan, the Bank of England,
or most especially our beloved Fed.
If it is your concern for the "naive"retail forex customer (and I'm
sure that there are many) that is uppermost in your mind, let me
remind you that we all sign documents of disclosure on risk, and that
to trade such an account at all implies that one is an adult, and can
therefore live with the consequences of their actions, come what may.
Finally, the reduction of leverage to 10-to-1 where professional
trades are carried out in $100,000 lots can only mean one thing: more
money of mine being held by my brokers in order for me to trade as I
do now, for no good reason at all. I don't see how that benefits
anyone, except the brokers. In fact, such a regulation will likely
drive traders to overseas accounts which will not be party to such
encumbrances, siphoning money out of our economy and into someone
else's; and surely, we can all agree, that we should want that money
circulating within our own economy.
I feel that I speak for many traders when I say that I hope that you
will reconsider adopting this regulation that is likely not to do what
your propose, and will put independent traders at a disadvantage to
larger institutional interests, yet again.
Sincerely,
Jeff Levi
