Comment Text:
i0-001
COMMENT
CL-04077
From:
Sent:
To:
Subject:
Bill Gomes
Tuesday, January 26, 2010 1:26 PM
secretary
regulation of retail forex
the proposed 10:1 leverages limits for retail forex will almost certainly prove to be counter productive.
most traders who have been responsible with leverage will move their accounts offshore as will those
whom you seek to protect i.e. who have lost substantially engaging in a market that they should not have
been trading.
U.S. based firms who the CFTC can and should regulate will lose business and those traders, successful
and not successful, who move their accounts will no longer have the regulation that the CFTC now can
enforce.
better margin enforcement is a much better way to approach the problem, if a trader is subject to a fixed
number of margin calls in a certain time period they should be identified by their broker and certain
sanctions should be enforced by the broker on the trader.
driving traders into the hands of poorly regulated offshore sharks should be a foremost consideration on
the part of the CFTC.
