Comment Text:
i0-001
COMMENT
CL-01872
From:
Sent:
To:
Subject:
Kristen Lambert
Thursday, January 21, 2010 1:58 PM
secretary
Regulation of retail forex
Hello,
I'm writing to you to express my dissatisfaction and strong opposition to the proposal to reduce the
leverage allowed in the retail forex market from 100:1 down to 10:1.
This is an unjust proposal, and should NOT be passed as a legitimate regulation.
Furthermore, if enacted, it not only hurts the retail trader, but it also hurts the retail firms that have
worked so hard to build up their client bases. Retail investors will most certainly move their accounts
off shore in order to still get the advantage that 100:1 leverage allows.
Typically, regulations protect those firms that are regulated and harm the consumer. Examples of this
can be seen in unjust price regulation of insurance rates, the lack of inspections in meat factories that
continually put out contaminated meat, title insurance that must be bought by the purchaser when homes
are sold giving the title insurer a 97% gross margin, etc.
Government involvement in markets is not the solution. Government generally is the problem and
regulatory regimes are typically unjust and inefficient at best. At worst, they are manipulated by those
that they purport to regulate as the regulators are merely biding their time until they can triple or
quadruple their salaries by taking jobs in the firms they used to regulate. The SEC is a classic example
of the revolving door.
Please do not allow unjust regulation to enter this market. This proposal must not be passed.
Sincerely,
Kristen J. Bickham
214.405.5345
