Comment Text:
i0-001
COMMENT
CL-03770
From:
Sent:
To:
Subject:
michael redman
Monday,
January 25, 2010 12:00 PM
secretary
Regulation of Retail Forex
RIN 3038-AC61
comment - resubmitted by email because of trouble with web form - if
duplicate, please ignore
the proposed 10% margin requirement on retail forex positions is
too
high for the risk characteristics of the currencies markets.
currencies are not the same as stock or gold or oil. currency margin
requirements on the order of 2-3% would be reasonable (the prevailing
1% does seem a little low ), 5% could even be conceivable if the sky
were falling, but 10% is going waaaay overboard, such an inflated
margin requirement would only unnecessarily restrain economic freedom
and/or result in a lot of needlessly idle capital.
if the currencies markets ever see a move that would require 10%
margin to ensure stability, margin requirements and market stability
won't even matter because we'll be too concerned about the end of the
world.
michael redman
[email protected]
http://www.romansinformationalconstructors.com/-michael
