Comment Text:
i0-001
COMMENT
CL-04246
From:
Sent:
To:
Subject:
Chris Bayless
Wednesday, January 27, 2010 10:49 AM
secretary
Opinion about recent Forex regulation proposal
To Whom It May Concern:
Regarding your recent proposal to regulate Forex brokers and transactions by reducing the leverage
structure to 10:1, it seems particularly unreasonable and selectively punitive considering the Futures
market is closer to 20:1. Why pick on Forex traders in this manner?
I am a part time Forex trader, and I'm all in favor of regulation designed to protect the trader from
broker-fraud. For example, I think Forex brokers should be required to segregate funds and carry
insurance.., the same as with the Futures market.., and the same as Forex brokers in the UK and
Canada.
But, I think you should leave the leverage structure alone. After all, we traders are not children;
particularly in Forex, we know what our risk reward ratios are. Protection from predatory and
undisclosed margin abuse from brokers is our main concern, not the leverage and margin call issues.
Please, feel free to require brokers to be ethical and professional, with full disclosure and account
protection; but,
leave the leverage structure at
100:1.
If you reduce it, you will simply force us
independent traders to open accounts with foreign brokers and transfer our money there. How
would that help the U.S. economy?
Thank you for considering this opinion.
Chris Bayless
Trader
