Comment for Proposed Rule 75 FR 3281
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From:
Michael M Murillo
Organization(s):
Comment No:
2836
Date:
1/22/2010
Comment Text:
i0-001
COMMENT
CL-02836
From:
Sent:
To:
Subject:
Michael M Murillo
Friday, January 22, 2010 4:19
PM
secretary
Regulation of Retail Forex
To whom it may concern,
I would like to voice my concern about and opposition to the newly proposed 10:1 margin requirements for Retail Forex
accounts. I believe that this recommendation would drastically reduce the opportunities and profits for small retail traders, like
myself. With the movements of currencies being tracked in sub-cents, the barrier for position entry will reduce the expected
ROI. Retail traders make up only a small percentage of trading that goes on in the foreign currency markets and the effects
small retail trades have on the overall market are completely minimal. Regulation only restricts small-scale traders as large
banks and institutions that make up the majority of foreign exchange trading already trade at low margin levels because of the
size of their transactions.
Perhaps a more prudent suggestion for mitigating risk on traders' behalf should be a sliding scale margin requirement so that
larger transactions must be backed with more margin.
I would appreciate your reasoning for the drastic, across-the-board margin requirement increase was necessary.
Regards,
Michael Murillo
