Comment Text:
i0-001
COMMENT
CL-02286
From:
Sent:
To:
Subject:
Richard McGrail
Thursday, January 21, 2010 9:29 PM
secretary
Regulation of Retail Forex
RIN 3038-AC61
Dear Sir or Madam,
I'm writing to voice my opposition to the proposed changes in leverage requirements the CTFC would like to impose
on retail foreign exchange traders. By reducing the leverage from 100:1 to 10:1, the CFTC will effectively prevent me--
and many traders like me--from accessing FX market. This would have stark consequences for me financially, since
FX trading is my only source of income. I use my earnings I make from trading the FX market to not only pay
rent, utilities, etc., but to also pay my federal student loans. Given the record levels of unemployment, FX trading will
likely remain my only source of viable income for some time to come.
I understand the government's concern with Wall Street's reckless risk taking in years' past. And I appreciate its
desire to ensure such behavior never happens again by passing tougher financial regulations.
But please consider that many retail traders like myself--a 28-year-old with an MA in the humanities and over $133k in
student loan debt--will be unnecessarily hurt by any leverage changes in the FX environment. Please understand that
I regularly send out over 15 resumes and job applications per day and have not been able to find a job in over one
year. FX trading has been the only thing keeping my lights on--the only thing allowing me to buy food, pay rent, and
pay down my overwhelming federal loans.
As an alternative, might I suggest imposing tighter leverage requirements on large financial institutions, and not on
the individual, retail trader.
Thank you for your consideration.
Best,
Richard McGrail
