Comment Text:
i0-001
COMMENT
CL-03074
From:
Sent:
To:
Subject:
Harold H Brazil
Friday, January 22, 2010 11:27 PM
secretary
Regulation of Retail Forex
This comment concerns the Agency's anouncement to modify regulations governing forex transactions.
I do not agree with the proposed rule to limit Forex leverage to 10:1. This severe limitation prevents educated
and disciplined investors form maximizing potential profit. The statement printed on your website does not
address any strategy or possible motive, although I suspect that investor protection is a possible motive. With my
2-3 year Forex exposure, I believe that any reasonable investor will (or should) look at all pertinent transaction
parameters associated with any proposed investment. The agency's proposal for a 10:1 leverage limit will do little
to protect the unwise investor who will., no doubt, find other paths to a loss. With a 10:1 leverage
limit, reasonable investors will be denied possible increased effectiveness in appropriate investments. In
summary, the proposed rule will provide little to decrease fraud while diminishing the goal to foster markets.
The proposed rule to further regulate brokers appears to be a reasonable idea; however, I would suggest a sliding
scale for broker funding limits and increased agency (governmental) surveillance of small and large broker
operations.
Harold H Brazil, MD
