Comment Text:
i0-001
COMMENT
CL-01879
From:
Sent:
To:
Subject:
[email protected]
Thursday, January 21, 2010 2:14 PM
secretary
Regulation of Retail Forex
Sir/Madam
The reduction of leverage to a maximum of 10:1 will be an industry killer, it will mean a lot of your forex
enterprises decide to set up shop elsewhere where it is more favourable for them.
Whilst it is understandable why this is proposed, with there are still firms providing over 100:1 leverage, making
the reduction in one go will be severely detrimental not only to the firms but also the small average trader. If you
are insistent on this 10:1 may I suggest it is something that is worked towards in steps, ie gradually reduce the
leverage, in small steps on a semi-annual basis 100:1 -> 90:1 -> 80:1 -> 70:1 -> 60:1 -> 50:1 -> 40:1 -> 30:1 ->
20:1 -> 10:1, so in 5 years it will be down to the 10:1 you want.
Or better still leave it alone, and only deal with consumer protection and other issues, for the people involved in
trading retail forex, they want the 100:1 more than they want 10:1.
Thanks
