Comment Text:
i0-001
COMMENT
CL-00434
From:
Sent:
To:
Subject:
Neal Helman
Tuesday, January 19, 2010 10:07 AM
secretary
Regulation of Retail Forex
Dear Sirs:
This note is in reference to RIN 3038-AC61, in which I understand a proposed leverage limit is to be moved from
100:1 to 10:1. I am not a large trader, and, if in fact this regulation is aimed at reducing the number of casual
forex traders, it should be rather effective. However, I believe that education in this instance will be more effective
and efficient than regulation. As is the
case
in all other
capitalistic
endeavors, the individual must be
allowed
sufficient freedom in the choices he or she makes to provide proper activity in the market. As far as retail trading
goes, I do not believe that moving leverage limits from 100:1 to 10:1 will allow individual traders such freedom.
Rather, I believe that regulation such as that proposed will cause many of us smaller retail traders to forego CFTC
regulation simply by establishing accounts with overseas brokerages. Thus, the effect I imagine this CFTC
regulation is likely aimed at will even more likely be undermined anyway.
Thank you,
Neal Helman
