Comment Text:
i0-001
COMMENT
CL-00927
From:
Sent:
To:
Subject:
[email protected]
Wednesday, January 20, 2010 6:59 AM
secretary
"Regulation of Retail Forex" [SEC=UNCLAS SIFIED]
To whom it may concern,
I'd like to comment on "RIN 3038-AC61" where there is a proposal to set maximum leverage to
10:1 for retail forex traders in the US. I believe that this is anti competitive, and will destroy the
market. Anyone who has a disciplined system, and is well educated who sets their stops
tightly can limit downside losses. The issue is not the amount of leverage being used, but that
people do not understand the risks, and how to limit them. It is a matter of simple
mathematics. I believe that potential retail forex traders should be made to sit a compulsory
course, with an exam at the end focusing on their mathematical ability, focusing particulary on
calculating potential losses and gains from the pips they make or lose. If you limit to 10:1, you
severely limit liquidity in markets, and damage the attractivenes of the market for traders.
Economics is about modifying behaviour. Limiting market behaviour uneccessarily is anti
competitive, and will negatively impact growth in the US market.
I like the idea of legislating brokers though. About time.
Michael Robinson
Position Number 600844
Migration Section
Australia House, Strand
London, WC2B 4LA
Tel: 020 7887 5981
Fax: 020 7887 5775
Email: [email protected]
Australian High Commission website: www.uk.embassy.gov.au
DIAC website: www.immi.gov.au
DIAC Privacy Policy: www.immi.gov.au/functional/privacy.
