Comment Text:
i0-001
COMMENT
CL-03276
From:
Sent:
To:
Subject:
Jim Malinowski
Saturday, January 23, 2010 1:56 PM
secretary
Proposed leverage change for Forex trading
David Stawick, Secretary
Commodity Futures Trading Commission
Mr. Stawick
I would like to express may concern over the proposed rule change that would decrease the
Forex leverage allowance from 100:1 to 10:1. This change in leverage would simply eliminate
any benefit or incentive for individual investors to be involved in Forex trading. While the
change in regulation is supposedly being considered to protect uninformed investors. The rule
change will have the unintended consequence of harming the same people.
As you are probably well aware, Forex trading has become both a primary and secondary form
of income for countless thousands of average Americans. The explosion of Forex trading in
the US has lead to the formation of many brokerages, investment services and software
developers to meet the needs of these investors and business people. These individual
investors are also helping drive the ecomony of our country through the use of the
aforementioned services are well as home office equipment, like computers, printers and high
speed internet services.
The change in leverage that you are considering would jeopardize all of this with the stroke of
a pen; leading many brokers to move their services out of the United States and to foreign
countries where US investors would be in even more risk.
This of course, would lead many employed by the brokerages to lose their livelihoods as well;
as more US jobs will be shipped overseas.
Those of us who are involved in the Forex market understand the power of leverage; both for
good and for harm. But, it is a risk that we are willing to endure for the potential profits that
are available to us through the Forex.
I would ask that the CFTC no longer pursue this potential corse of action.
Sincerely, James Malinowski
