Comment Text:
i0-001
COMMENT
CL-01334
From:
Sent:
To:
Subject:
Phil Stanwood
Wednesday, January 20, 2010 10:58 PM
secretary
'Regulation of Retail Forex'
I am writing in direct opposition to the proposed regulation (RIN 3038-AC61) to reduce the leverage of forex
trades from 100:1 to 10:1.
As an individual retail forex trader, I need to have flexibility in my trading formats and money management. This
is the only way I can compete in the market, especially against larger firms, organizations and companies. You
have already severely restricted my trading by imposing the non-hedging rule and FIFO rule and now reducing my
money management flexibility with proposed lower leverage limits.
Your stated goal is to help protect the forex traders, but in fact you are ex-facto giving significant advantages to
the large trading groups and increasing the risk to individual traders. The reality is that you are protecting traders
like me by driving us out of the forex market. So, my only conclusion is that you are using this "protection"
propaganda to cover what is really happening. What I cannot figure out is if it is a calculated strategy on your part
or just plain ignorance or denial of the effects these rules have on retail forex trading.
I would like to reiterate that I am vehemently opposed to the proposed ruling on leverage and the imposed rules of
FIFO and hedging. I believe that your assessment of the effect of these rules is severely flawed and lack real-
time, on the ground currency trading experience and reality.
All of these rules significantly increase the risk of
trading to the individual trader and restricts the forex markets to large firms. This does not seem to me to be the
American way.
Regards,
Phillip C. Stanwood, PhD.
