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Comment for Proposed Rule 75 FR 3281

  • From: Pamela Reavis
    Organization(s):

    Comment No: 222
    Date: 1/17/2010

    Comment Text:

    i0-001
    COMMENT
    CL-00222
    From:
    Sent:
    To:
    Subject:
    [email protected]
    Sunday, January 17, 2010 12:54 AM
    secretary
    Public Comment Form
    Below is the result of your feedback form. It was submitted by
    ([email protected]) on Sunday, January 17, 2010 at 00:53:41
    commenter_subject: "Regulation of Retail Forex"
    commenter frdate: 1/16/10
    commenter_frpage: 5772-10
    commenter_comments: To Whom It May Concern: I think lowering the
    leverage requirement for retail F OREX transactions
    will do the exact opposite in regards to customer
    protection.
    It wouldn [] t matter if you lowered or raised the
    leverage amount in terms of customer protection.
    The fact of the matter is many uneducated people
    try their hand at FOREX and lose. Reducing leverage
    will not change this outcome when FOREX brokers
    blanket the internet with advertising promising
    fast and easy money with a little disclaimer at the
    bottom of heavy risks of loss.
    The fact is the FOREX is a zero sum market.
    Lowering the leverage of retail FOREX in the U.S.
    would do nothing but kill a legitimate business.
    Why would Americans keep trading in a climate that
    is laden with laws against them? Why would
    foreigners open a FOREX trading account in the U.S.
    when the rules are prohibitively against them
    compared to other jurisdictions around the globe?
    [Leverage works for you as much as against you.]
    We have already suffered massive restrictions in
    the U.S. already from the NFA with imposing No
    hedge rules and FIFO. Most U.S. brokers have
    already opened brokerages outside the U.S. already
    due to the enactment of these rules and to my
    knowledge all have plans to do so.
    By enacting this legislation to restrict and limit
    traders further will only cause a mass exodus ofi0-001
    COMMENT
    CL-00222
    FOREX trading in the retail U.S. markets.
    This will cause American traders to put their money
    in less than scrupulous brokers with less ethics
    than what the U.S. permits via the NFA oversight.
    So if American traders put their money in a foreign
    FOREX broker how can you say this will benefit the
    trader? How will this protect the American trader?
    How will this benefit the U.S. based broker? How
    will this encourage investment from foreign means
    in the retail U.S. FOREX market when rules around
    the globe are more favorable to the trader?
    Are we not satisfied until we move all high paying
    jobs overseas?
    Before we were hit with all the erroneous NFA rules
    and regulations we were afforded up to 400:1
    leverage. Guess what? people were blowing accounts
    even at that level. Changing the level of leverage
    will do nothing to prevent someone from blowing an
    account or losing in FOREX.
    The U.S. retail FOREX market is an infant when
    comparing it to the U.K. and various other places.
    Yet they don[t see the need for these kinds of
    rules and restrictions. If you are so worried about
    the consumer you should educate them and not
    restrict them.
    Because an educated trader will know better when
    the time comes. Limiting leverage or some of these
    other ridiculous things the lawmakers that be come
    up with all in the name to protect us from
    OURSELVES? What a pathetic joke. If it[] s not
    obvious already I would hope that you elect to
    leave leverage rates the way they currently are at
    the minimum of 100:1. Otherwise the blood of the
    retail U.S. FOREX markets are on your hands and the
    people you are trying to protect will be leaving
    your jurisdiction in droves. BTW, this isn't a
    threat it's a promise.
    Sincerely,
    Pamela Reavis
    commenter name: Pamela Reavis
    commenter withhold address on: ONi0-001
    COMMENT
    CL-00222
    commenter addressl: 930 43rd Ave #34
    commenter_city: Sacramento
    commenter state: CA
    commenter zip: 95831