Comment Text:
i0-001
COMMENT
CL-03320
From:
Sent:
To:
Subject:
Mike Graser
Saturday, January 23, 2010 3:14 PM
secretary
Regulation of Retail Forex RIN 3038-AC61
Changing leverage from the worldwide standard of 100:1 to
10:1 will
only server to send more
money out of the US to foreign soil.
Forex investors are smart enough to know that if the proposed regulations are passed that they can put
their money in overseas forex dealers to continue using the leverage they require. Those that do not
know this will soon follow suit, as the information is freely available and already being discussed across
all major Forex forums. The likely end result is that it will no longer be profitable for legitimate Forex
brokers to operate in the US,
leaving only fraudulent Forex brokers behind.
Your proposed
regulations
will negatively impact an already damaged US economy and job sector.
In recent years, I've seen
regulations
drive many tech companies out of California. More recently, in an
effort to protect a non-native fish called Smelt,
regulations
are causing California farmers to sell their
farms by withholding water from them. Nationwide, jobs are being lost to cheaper workers from
overseas - again, due to current
regulations.
Right now, Forex is a $1 billion industry in the US and is
responsible for many jobs. You suggested
regulations
will mean more money is pulled out of the US
brokerages, the money going again to overseas companies, with US brokerages closing down.
The change to a 10:1 will not "protect" people from bad investments, but will encourage them.
Those that choose to operate under these constraints are more likely to be the sort to throw caution to the
wind and enter into bad investments. Leverage constraints combined with poor money management will
result in their trades being stopped out sooner. They will lose their money more quickly, rather than
less. In short,
your changes will hurt rather than protect the same people you are looking to affect.
As one of many concerned forex traders, I ask you to withdraw the proposal to change from a
Worldwide Standard of 100:1 to a Risk-Laden
10:1.
The result will be harmful to the US economy,
US j obs, and to individual investors.
Thank you for your time.
Sincerely,
Michael A Graser
