Comment Text:
i0-001
COMMENT
CL-01935
From:
Sent:
To:
Subject:
Stephen Munday
Thursday, January 21, 2010 3:28 PM
secretary
Regulation of Retail Forex
Dear Sir
During the last year there has been increasing amount of regulation of retail forex which on the face of it
has been for the benefit of clients. However, as a member of a number of online communities involved
in Forex Trading, I cannot recall one time that a fellow trader has welcomed the news of further
regulation. What is also disturbing is that although there always are "listening" periods, the regulations
that are then brought in are no different from the proposals, which can only make me conclude that there
is no real interest in listening to the consumer on this one.
Now we come to the latest proposal of reducing leverage from 100:1 to 10:1. This is completely
unacceptable and will drive myself and a lot of other traders to look for other solutions in other
iurisdictions. The trader is in no way protected by this reduction in leverage, as he will just increase the
size of the positions he takes in order to achieve the results he wants, and then he will actually expose
himself to margin call earlier. This proposal does nothing to protect the consumer and in fact it does just
the opposite, while at the same time driving this rapidly growing industry and provider of US jobs
offshore to Europe, Russia and elsewhere.
I hope very much the the views of the trading public will actually be listened to on this occasion.
Thank you for your time.
Yours,
Stephen Munday
