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Comment for Proposed Rule 75 FR 3281

  • From: Oscar Onyango
    Organization(s):

    Comment No: 1874
    Date: 1/21/2010

    Comment Text:

    i0-001
    COMMENT
    CL-01874
    From:
    Sent:
    To:
    Subject:
    oscar
    oluoch
    Thursday, January 21, 2010 2:00 PM
    secretary
    Regulation of Retail Forex
    Dear Sir/Madam
    I respect and actually advocate for some form of regulation by the CFTC. I think that a market with as large a capitalization
    as the forex market definitely needs regulation. However the regulation must lead to efficiencies and not be stifling on
    smaller players. I believe that if the proposal to reduce leverage to a maximum of 10:1 would prove stifling to many smaller
    players like myself.
    I am just starting out in the business of forex trading and intend on making it my livelihood. For me to realize any meaningful
    gains i need a leverage of at least 50:1 since I also have a small amount to work with as margin. A leverage of 10:1 would
    simply make trading onerous and I would have to give up on fx trading altogether. This would put me out of work and in a
    small way reduce much needed tax collectible by the state and federal government on interest and capital gains.
    From a big picture point of view, me as an individual foreign currency trader represents many Americans who are just trying
    to form small businesses that increases governments' (state and federal) tax base and divest trading capabilities from large
    institutional firms (reducing risk of collution and manipulation that is inherent in any system that has a few large players as
    opposed to numerous smaller players).
    Please reconsider removing the proposal to limit leverage to 10:1.
    Kind regards
    Oscar Onyango
    844 Antoinette Lane
    Apt E
    South San Francisco
    CA 94080
    (510) 870-0308