Comment Text:
i0-001
COMMENT
CL-03787
From:
Sent:
To:
Subject:
Demme Wiggins
Monday, January 25, 2010 1:48 PM
secretary
'Regulation of Retail Forex'
January 25, 2010
Mr. David Stawick
Secretary, Commodity Futures Trading Commission
1155 21st Street NW
Washington, DC 20581
RE: RIN 3038-AC61
Mr. Stawick:
The recently proposed CFTC regulation that would implement a limit of 1:10 leverage on retail Forex trades is misdirected and
will very negatively impact virtually all full-time honest currency traders.
Still, I could understand and support your efforts were I to agree with the expected outcome. You have indicated you are
doing this in order to protect the retail Forex trader. If you truly believe this is what you will achieve, then you do not
understand the Forex at all.
This ruling would not decrease our risk; in fact it would increase it. I trade very conservatively, but have minimums that I need
to make during a week. So if you decrease my leverage to 1:10, I would need to increase the amount of money I[]m out of
pocket to finance the trade by 1000%. Instead of putting up $300 to purchase 3 mini lots, I would be forced to put up $3000 in
order to purchase 3 standard lots. This would likely over margin my account and I could be margined out altogether[]all
thanks to you.
If you really propose to protect the retail trader, then place stricter account margin limitations on these traders. Now that would
indeed go much further towards protecting the retail trader from his broker and from himself.
I have seen many changes to Forex trading in the past year. These changes have been discouraging to my colleagues and
myself. We work hard, we study, we trade conservatively; and we do not deserve to have government come in and try to
protect us from ourselves~when said government is so misguided.
Please take a moment of your time and really study this proposal and other solutions. I cannot fathom that you would continue
with it if you were to truly understand that it will not achieve what you are aiming for.
Regards,
Demme Wiggins
