Comment Text:
i0-001
COMMENT
CL-02521
From:
Sent:
To:
Subject:
Tim Wilde
Friday,
January 22, 2010 8:46 AM
secretary
proposals
Dear
Sirs,
I refer to the proposal set out below to limit leverage on customer accounts. I think this would be a
retrograde step for all independent traders fike myself who have small accounts. I befieve the current
controls exercised by brokers offer adequate protection for all parties concerned. Nobody is under any
illusion that trading carries significant risk. However, limiting leverage will simply encourage people to
borrow more money than they otherwise would do so potentially lose more money whilst trading.
Currently traders such as myself can start with small accounts and hopefully see those accounts grow
while at the same time not risking significant sums of money. Your suggested course of action will
simply encourage people fike myself to overreach themselves while they are still learning.
I wouM urge you to reconsider your proposals andperhapsfocus more on compulsory education for all
would be traders when they open accounts. The biggest progress i have made in my trading has been as
a result of education rather than limits to leverage.
Your sincerely
Tim Wilde
Trader
As many of you are aware, the U.S. Commodity Futures Trading Commission
(CFTC) announced on January 13, 2010 that it is seeking public comment on
proposed regulations concerning retail Forex trading.
As part of the proposed regulations, it is stated: "leverage in retail forex
customer accounts would be subject to a l O-to-1 limitation," which means 10:1
leverage would be the maximum amount allowed for all Forex traders in the U.S
