Comment Text:
i0-001
COMMENT
CL-03228
From:
Sent:
To:
Subject:
Golledge,
Steven
Saturday, January 23, 2010 11:20 AM
secretary
Regulation of retail forex
Dear Sir/Madam:
I have read with interest the proposed regulations on retail forex trading
ID # RIN 3038-AC61.
As a professional trader for more than 40 years, I am fully aware of the
risks involved with margin trading and the possibility of sizeable losses if
those risks are not properly managed. However, it is my experience that the
reputable companies operating in this market provide ample tools to manage
risk by the use of stop loss and other limit orders, and will automatically
close positions to ensure that losses cannot exceed the available margin.
I strongly believe that each customer should be allowed to determine the
appropriate level of leverage for their own trading account, within the
overall trading structure. While I agree that there should an upper limit on
leverage, the existing 1% level is comparable to the margin required at the
major exchanges and seems appropriate to this type of trading. A limit at
the level proposed will likely encourage clients to move their accounts to
other less-regulated geographies, thus increasing the risk for
less-experienced traders
In order to avoid disputes between the account holder and market maker, I
would suggest that all account holders be required to submit their own
leverage preference, in writing, with the information to be retained in the
market-makers records for audit purposes.
I request your reconsideration of this proposal.
Respectfully yours,
Steven Golledge
