Comment Text:
i0-001
COMMENT
CL-03159
From:
Sent:
To:
Subject:
nearly
Saturday, January 23, 2010 9:42 AM
secretary
N.b., Regulation of Retail Forex; other
Dear Secretary;
This letter (honestly) was prompted by emails I have received from forex brokers.
It is in two parts;
Part1 ... the first in response to their request I write you pleading in response to CFTC identification number RIN
3038-AC61.
In answer: I believe this proposed action is
not the
solution to the problem. True it will
reduce the
volatility in forex markets but leave the American investor still vulnerable to the excesses of Globex (esp.
night trading).
Part 2 ... trading in our markets (where comments apply), whether it be forex or commodities, stocks, etc.,is
dominated during the American night and by foreigners/Globex. I believe Globex/electronic trading is the absolute
best invention ever taken advantage of by the bank of England to rid Americans of their money. What does the
typical (once referred to as the odd-lotter) investor or speculator do first in the morning? Why he or she checks to
see what the devils of the dark have done while he or she has been asleep! What ever the investment medium is
(paper or piggies) the night rules the day! And in our markets! How ludicrous!
All of the (tradable) major moves in currencies take place at night. Or almost all. The stock market takes its clue for
the day from the so-called pre-market activity. The price and direction of corn or beans is dictated by electronic
trading at night via Globex. Again: how ludicrous!
Finally ... the best test of how well or badly the financial investing environment actually (be it forex, commodities,
stocks, bonds ..... you name it) is whether an academician (or people at Iowa Grain) can actually prosper us(uNDg
sound fundamentals, supply and demand considerations, etc.) over
time.
And not whether trading limits or the
size of a bank account or insider information is used.
The upstart with a PC and a bag of indicators should not be the determinant!
Again - our major problem is situational. Changing limits will not change this situation.
Robert I Baran
former: CPO/CTA and analyst (for over 45 years)
ex-military officer
ex-registered CFTC/NFA member
