Comment Text:
i0-001
COMMENT
CL-01175
From:
Sent:
To:
Subject:
alvin yap
Wednesday, January 20, 2010 9:27 PM
secretary < secreta ry@ C FTC. g ov >
Regulation of Retail Forex
Dear Sir
RIN 3038-AC61
Extract from CFTC proposed regulation:
"leverage in retail forex customer accounts would be subject to a 10-to-1
limitation,"
As a retail forex trader, I find the above proposal extremely intrusive and
unnecessary. 2 things came to my mind when I read the proposal.
1) Kill retail forex market = Protect US futures market
Please don't insult the intelligence of the retail investor community by denying the
above. I sincerely hope the US will not adopt this high-handed attitude in dealing
with other international trade issues. A better alternative would be to boost both
markets through regulations which truly protect all types of investors. Perhaps
both markets could offer different trading terms and conditions to cater to
different types of investors.
2) Tremendous increase in risk to the retail investor
Under your proposal, 90% of retail forex investors would be eliminated
immediately. The remaining 10% more highly-capitalised investors would have to
greatly increase the funding of their trading accounts. This would expose them to
higher risk of massive losses. As everyone knows, the greatest bane of retail forex
is the predatory nature of forex brokers, and occasionally, their tendency to
disappear/fail together with the customers' funds, irregardless of whether they are
regulated by NFA, CFTC or whatnot.
I am sure your proposal will attact great interest from the forex community.
Please take our feedback seriously, afterall, your purpose is to serve us, and not to
sever us.
Regards
Alvin Yap
Singapore
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