Comment Text:
10-002
COMMENT
CL-07863
From:
Sent:
To:
Subject:
bogdan romocea
Wednesday, March 10, 2010 7:31 PM
secretary
Regulation of Retail Forex
Hello,
I am writing to express my strong disapproval of the proposed 10:1 leverage cap for retail forex.
I don't think there's anyone operating under 100:1 (or until recently 200:1) leverage who doesn't fully understand the potential
dangers and benefits of using high leverage.
In addition, there are clear and robust mechanisms which ensure that even in times of high volatility losses can't spread
through the system. The forex dealers won't let account balances become negative, and if you perhaps think 100:1 still makes
dealers too vulnerable then why not address this issue directly by asking them to increase their reserves and the like.
Against this background, I find the proposed cap to 10:1 a classic case of "we regulators know better than you what's better
for you". Clearly not true, and not something I'd expect to see in the US.
Kind regards,
Bogdan Romocea
