Comment Text:
i0-001
COMMENT
CL-05782
From:
Sent:
To:
Subject:
Greg Gianoni
Wednesday, March 3, 2010 8:28 PM
secretary
Concerning Leverage Cap
To Whom This May Concern:
I understand there is much controversy in regards to whether or not the leverage cap should be changed
to 10:1. I am new to the currency markets but have been trading equities for a few years. I have a
degree in economics and finance from Bentley University and am a financial advisor. It is my belief
that if the leverage were changed, the market would become illiquid, many people would discontinue
trading because the potential for profits is much less. This would give way for institutional investors to
more adequately manipulate the markets. A decrease in private investors will mean less commissions
from the spreads of trades for companies such as forex. As private trading decreases, these companies
will make less money, resulting in less revenue, forcing a cost cut and potential layoffs. At a time when
we should be creating jobs, we would be doing the exact opposite. The only good reason to change the
leverage would be to take the risk off the table for people that invest too aggressively. This could easily
be diverted by slightly increasing the margin and forced stop losses in people's accounts. Although I
would also be against that, it would be much more effective and less destructive than adjusting the
leverage ratio.
I appreciate your time. If you have any questions or comments feel free to contact me via this email
address.
Regards,
Gregory J. Gianoni
Bentley University Alumni
Economics-Finance
Law & Psychology Minors
Tel: (860) 384-2582
Email: [email protected]
