Comment for Proposed Rule 75 FR 3281

Comment Text:

i0-001
COMMENT
CL-02473
From:
Sent:
To:
Subject:
MARK SCHMUCKER
Friday, January 22, 2010 6:28 AM
secretary
Regulation of retail Forex
Dear Sir,
I am a Forex trader who uses a US-based broker for his trading. I wanted to express my deep concern
with the proposed reduction of leverage available to Forex traders.
I am an American citizen, and feel this regulation is a slap in the face to the American values of freedom
of choice, etc. I am certainly be concerned about the US Government[] s tendency to narrow more and
more the decision making latitude available to a citizen.
I do understand something about traders [] psychology. When today a 100:1 leverage is available, a
beginning trader can invest $400 to be able to test out his or her ability. Most chances are that s/he will
lose this money [] and this is a sum many people can afford to lose. Under the proposed regulation, s/he
will lose $4,000, which for most households is a substantial capital. I am confident that the proposed
rules will make many aspiring retail traders [] families miserable.
As far as a small retail trader like myself is concerned, the scenario is clear: The moment the leverage is
reduced, I will explore the options of moving my trading capital elsewhere. This is going to be a lose-
lose situation: I will lose access to a good broker, and the American economy will lose access to my
(and thousands other traders []) capital. The only ones going to profit from the proposed leverage
regulations are the economies of Australia, UK, etc.
I plead to seriously re-consider the proposed reduction of leverage in the retail Forex industry.
Yours sincerely,
Mark Schmucker