Comment Text:
i0-001
COMMENT
CL-03983
From:
Sent:
To:
Subject:
Jon A. Quist
Tuesday, January 26, 2010 4:19 AM
secretary
Regulation of Retail Forex
Dear Secretary,
I most strongly disagree with any proposal to regulate retail forex with the intent of establishing a margin
requirement of 10:1.
Such regulation ultimately will not succeed in protecting retail traders from risking their money in this market. It
will dissuade some, I am sure, as the means to trade will be reduced. But it will not eliminate those willing to
take the risk. In fact, such action will only increase the risk to any remaining retail traders in at least one way,
and probably more.
The one certainty is that the number of traders will thin, and consequently competition will decrease. With less
participants the remaining traders will be easier for commercial traders to focus upon and they will more easily
manipulate the market in ways that will decrease the odds for retail traders below what we see even today.
As for price executions, and the free flow of currency exchange, with less traders in the market place the
remaining participants will not be well served. As commercial traders ultimately represent international
businesses and investors, who are already suffering in the wake of the current world economic situation, the
new regulation will seem to be a burden on them. But in reality, all of these entities are intertwined with
individual consumers and employees, and the less favorable exchange encountered by the commercials will just
be passed down to all of these "innocent" individuals.
I believe the burden that retail traders
choose
to take upon themselves, actually serves to help the economy on
many levels. I believe such regulation is bad for business, bad for the economy, and bad for retail traders as well.
It is my sincere hope that such a regulation is never passed.
Sincerely,
Jon A. Quist
Kailua, Hawaii
