Comment Text:
i0-001
COMMENT
CL-00258
From:
Sent:
To:
Subject:
Damir Petkovic
Sunday, January 17, 2010 4:19 PM
secretary
Regulation of Retail Forex and 10:1 leverage
Dear Sirs,
I am a retail forex trader from Europe and I have been relying on a US
forex broker services to my best satisfaction for some time now.
As of recently, I have heard that CFTC has plans to downsize (yes, this
is probably the most appropriate word for it), the US retail forex
leverage down to 10:1.
In few words, should this really happen, I and many other people I know
who currently rely on US brokers are going to transfer our capital from
BOA and other US banks and brokerages to European banks and brokerages
which are far less convenient for trading but at least have no problems
with 100:1 leverage.
With all due respect, it is my honest opinion as a forex trader that
this regulation of yours can represent the final blow to the US retail
forex, so if it is your aim to destroy this industry entirely in the US
and have the capital transfered elsewhere then feel free to proceed with
it. If on the other hand you do happen to care for the industry, then
please, by all means, abandon this idea forever.
Trading is risky. All trading is risky. Those who don't understand
and/or are not ready to assume this risk should not be trading and not
you nor any other body should try to "protect" them against themselves
on the account of other traders.
Also, I would like to remind you that forex is the very least risky
market. Exchanges can and do crash. Exchanges can and do open with huge
gaps. Exchange traders can and do end up owing commodity and stock
brokers more than they have in their accounts. Forex traders are immune
to these risks. But then again, you already know this. Therefore, being
well aware that you have already received tons of similar appeals I will
have no other option but to judge your decision (again, should it take
place) as malevolent and counter to common sense and financial interests
of the United States.
Looking forward to your soon reaction and complete rejecting the 10:1
leverage related regulation.
Sincerely,
Damir Petkovic
