Comment Text:
i0-001
COMMENT
CL-00174
From:
Sent:
To:
Subject:
Terry
Saturday, January 16, 2010 12:08 PM
secretary
Regulation of Retail Forex
Dear Secretary,
It has come to my attention that some significant changes to retail forex trading are being
contemplated. While I support new rules that safeguard individuals from unscrupulous and
dishonest brokers and other players, and the many scares that occur in the financial/investment
industry, we must be vigilant not to destroy the entire market in the process.
The proposal to limit risk to 10:1 in the retail forex market is not a good idea. The reason we take
risks is to gain reward. The bigger the risk, the higher the potential rewards should be. By limiting
the risk:reward ratio, investors will be forced to find other ways to increase their potential rewards.
In my opinion, this will lead to more individuals and organizations moving their money offshore,
very likely into even HIGHER risk situations, without the security and support of the US
government to assist them. When investment money moves offshore, it reduces jobs and
government income, and has the potential to severely impact the industry and economy in a
negative manner.
Please do not allow legislators/rule-makers to "protect" us to this extent. By safeguarding the
uninformed investor in such a way, the rest of us will suffer needlessly, and the impact of reduced
trading will have a severe impact on the industry.
Please leave the leverage ratios alone.
Terry Potter
