Comment Text:
i0-001
COMMENT
CL-03826
From:
Sent:
To:
Subject:
Chad Uecker
Monday, January 25, 2010 4:22 PM
secretary
Regulation of Retail Forex
In response to your public release (RIN 3038-AC61, 5772-10,
http://www.cftc.gov/newsroom/generalpressreleases/2010/pr5772-10, html)
on Proposed Regulations on retail FOREX
transactions I wanted to voice my strong opinions on this matter. I have recently started trading in the retail FORE× market
after a few of years of on and off studying. Your proposed changes on max leverage will kill the retail FORE× market in this
country and force those of us in the middle class who are using this to try to get ahead and build up some retirement to either
give up or take our money out of the country to find other opportunities in countries that still allow their citizens the freedom to
invest THEIR money as they see fit. This WILL produce capital flight and the closing of brokerages. The only entities that
have any right to decide how much risk I am allowed to take with my money is me and my broker. Period.
I can afford to trade in the FOREX with the current 100/1 leverage but I can't afford the tens of thousands extra this change
will force and with only a 10/1 leverage there is no reason to trade in the FOREX since that makes the risk/reward ratio a joke
from my point of view. The only reason to set the max leverage to 10 to 1 would be to destroy the retail FOREX market or to
make sure that those in the middle class have no chance to move up by trading in the FOREX. It's not to protect investors
from losses. History shows these type of regulations hurt private citizens far more than they help or protect. Now you do
have the right and ability to protect citizens by ensuring that those brokerage firms in the FOREX deal on the up-and-up and
are financially stable and secure but I don't see how you can tell a free citizen how much risk he/she should be allowed to
take with his/her money, that is between that person and their banker/broker.
Lastly, every brokerage firm I researched allows the person to set their leverage; therefore the leverage is NOT forced on the
investor. Each firm has a range it is comfortable with and it lets their clients choose from within that range, whatever they are
comfortable with. That is exactly how the system should work! If it's not broke don't fix it!
Thank you for your time,
Chad Uecker
Castle Rock, (6th Congressional District of) Colorado
