Comment Text:
i0-001
COMMENT
CL-05745
From:
Sent:
To:
Subject:
Neil Douglas
Wednesday, March 3, 2010 7:35 PM
secretary < secretary@ C FTC. g ov >
Regulation of Retail Forex
Dear David Sawick,
I strongly appose the 10:1 leverage cap.
The fundamental cause of economic failure is the lack of government regulation in lending policy
and NOT the "traders" ability to shorta market in a highly leveraged position. The market sets the
price NOT the individual trader or group of traders shorting it. If it has been shorted toa low level
the buyers come in force to buy up cheap contracts. Demand and supply is a fact. Why did
traders want to short the market? Because it was overpriced based on the irresponsible lending
practices by greedy banks. Shorting the market was nota cause ofcollapse...the lending practices
were.
To cap the leverage on a market from 200:1 before the crash, then to 100:1 now and the proposed
10:1 in future is merely going to reduce liquidity and profit. The bigger bank players will make less
profits themselves and will pass that on to the average every day bank customer which will in turn
slow down the economic recovery.
You wanta safe secure market system? Target the asses responsible for the crash and leave the
ones that profit from fluctuations by making trades based on external market conditions.
Yes I am atrader. My profit potential has already been halved. Ido NOT want to see my profit
potential go to 20 times less than it was a year ago.
Lets cut you salary by that much and see how you like it.
The government wants to be seen to be doing something useful? Go do something useful...not
this.
Neil Douglas.
