Comment Text:
i0-001
COMMENT
CL-00043
From:
Sent:
To:
Subject:
investingjeff
Thursday, January 14, 2010 11:48 PM
secretary
Regulation of Retail Forex
Dear Secretary,
I recently read your proposed changes concerning the forex retail market. While I have no issues with your capital
requirements for brokers and your capability to investigate and address issues of fraud which I see as protecting the
individual investors I do think your reduction of the limit of trading leverage from 100:1 to 10:1 will have a drastic
negative effect on the individual investor. You are basically making retail forex a club for the elite and eliminating
the possibility of the little guy having a chance of effectively trading forex. This new requirement will drastically
reduce the number of retail forex traders. You should realize that the little guys actually provide a lot of liquidity
that when removed will cause greater fluctuations in prices than now. Please provide a list of reasons for the
reduction in leverage and how you see that benefiting anyone in the forex trading market. I would also like to see
who is on the committee who produces these regulations as I seriously doubt the retail forex market has adequate
representation. This feels like taxation without representation in that the CFTC is making regulations that will cause
severe pain for myriads of traders without taking the input of those traders into account.
Regards,
Jeff
