Comment Text:
i0-001
COMMENT
CL-03088
From:
Sent:
To:
Subject:
Steve Dent
Saturday, January 23, 2010 12:24 AM
secretary
Regulation of Retail Forex
Dear Sir/Madam,
I write in relation to the news that the United States Government intends on regulating the retail forex
market, banks and other finance house etc.
Whilst I recognise what the anticipated regulations are trying to achieve and the reasons as to why they
are being considered - they amount to trying to crack a walnut by using a 1001b sledgehammer!
In simple terms, the current world financial meltdown was caused by the banks and finance houses
reckless lending practice's -
NOT by individual investors
... whether they are in the stock markets, forex
markets, bond markets - or any other investment market!!!
Those investors have had their investments/money decimated by the likes of Lehmann's and Madoff etc.
who were Reckless and Greedy! Those investors had no control over their monetary losses
.....
they were
powerless.
I believe what is vitally important to consider here though -
is that Forex Traders are in complete
control of their own investment decisions and they are fully aware what the risks are - and that
includes losing all their money very quickly.
While I am encouraged to hear that - for the safety of all participants, Brokers, Merchants and Dealers
etc are ALL going to have to be registered with the SEC (long overdue!), I am very alarmed to hear that
your regulations will also include setting the
maximum
leverage for US retail forex to 10:1.
This ratio is totally absurd and, if brought in, it will result in many millions of dollars leaving the shores
of the US. If not, it will not be worth them trading forex any more and they will be forced to put their
money back into the banks ...... and that is like jumping out of the fire and into the fire
One thing I respect about the USA is their penchant for democracy to reign... Please don't take that
democratic right away from Forex Traders by reducing the leverage ratio's to an absurdly low level.
Thanks
Steve
