Comment Text:
i0-001
COMMENT
CL-04190
From:
Sent:
To:
Subject:
Kenneth Wong
Tuesday, January 26, 2010 11:04 PM
secretary
Regulation of Retail Forex
Hello Secretary of CFTC,
I disagree with the CFTC proposal to reduce Forex leveraging to 10:1. Reducing leverage is not the
correct solution.
Unforeseen Risks:
- Reducing leverage by 90% will reduce Forex profits from large institutional players =>Decreased tax
income for the government during a recession.
- Reducing leverage by 90% will reduce liquidity in Forex dramatically => Negatively impact day-to-
day currency transactions for all.
- Reducing leverage by 90% will remove most profitable opportunities for small players => Unequal
trading opportunities between large and small players in the Forex market.
Solution:
- Cap the leverage of only the large institutional players that hold the most risk.
- Educate smaller players on proper leverage vs. risk usage.
RIN 3038-AC61
Thanks.
-Kenneth Wong
