Comment Text:
i0-001
COMMENT
CL-04252
From:
Sent:
To:
Subject:
na
Wednesday, January 27, 2010 11:09 AM
secretary < secretary@ C FTC. g ov >
Regarding the Regulation of Retail Forex
Dear CFTC Rel~ulators:
I first thank you for all your efforts in rel~ulatinl~ the markets and protectinl~ investors' interest. I do
think there are al~l~ressive speculative activities in many markets and these markets should receive
stricter supervision.
Althoul~h I have been in the fx market for quite some time, I can't say I am an experienced trader. I
don't possess all the necessary skills to be a professional trader nor am I planninl~ to be one. I trade
currencies because it is interestinl~. I have to say, durinl~ all these years, the fx market has taul~ht me a
lot. While a l~reat number of factors cause exchanl~e rates to chanl~e, from the chanl~es of these rates,
we can also l~et a lot of information. Countries from around the world have never been so
interconnected than today and their economies will be more and more intel~rated. There is no other
financial market that can reflect real world situation so much than the fx market.
Rel~ardinl~ RIN 3038-AC61, I have somethinl~ to say. Frankly speakinl~, a leveral~e ratio of i00:i is
undoubtedly risky. However, we all know that the fx market can reflect reality the most and under
normal conditions, it is less volatile than many other markets such as the stock market and
commodities market. Currencies are very safe instruments because they are backed by the credits of
their issuinl~ l~overnments. Moreover, we can choose our own leveral~e to meet our appetite and
demand. If we want a lower risk, we can always choose a lower leveral~e ratio. More choices are
always better than less choices. More importantly, we all know that the excessive volatility does not
come from tradinl~ from retail brokers. Traders tradinl~ throul~h these brokers do not have the power
to actually move the market. Problem will not be solved by simply lowerinl~ the leveral~e ratio.
We all want a better rel~ulated and more transparent market, key is how we can l~et one. Lowerinl~
leveral~e ratio in my humble opinion is not the solution.
Thank You Al~ain and All the Best Wishes,
Sean Wanl~
