Comment for Proposed Rule 75 FR 3281
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From:
Christopher Horne
Organization(s):
Comment No:
2160
Date:
1/21/2010
Comment Text:
i0-001
COMMENT
CL-02160
From:
Sent:
To:
Subject:
Christopher Horne
Thursday, January 21, 2010 7:38 PM
secretary
Regulation of Retail Forex
Dear Secretary,
I am writing to comment on the proposed 10:1 leverage change in the currency markets. This is a
ridiculous and short-sighted proposal. Leverage has already been decreased from 400:1 to 100:1. A
decrease to 10:1 would wipe out most retail currency traders. A lack of traders would mean a dramatic
increase in volatility and a decrease in the efficiency of the forex market. Traders who are able to afford
the larger deposit requirements may move to offshore and unregulated brokers who can offer higher
leverage, therefore increasing competition for American brokers.
10:1 leverage would also mean more money would be needed in order to start trading, which is bad for
a new trader just starting out. No matter what the leverage given is, even if it is 1:1, people who do not
know what they are doing will still lose their money, and more of it since it will be required to put up a
larger deposit.
These proposals aren't "protections". As a customer, we are able to exercise discretion in what we buy
and sell, and what markets we participate in.
