Comment Text:
i0-001
COMMENT
CL-04094
From:
Sent:
To:
Subject:
Rick Church
Tuesday, January 26, 2010 3:34 PM
secretary
Regulation of Retail Forex
This is my third email. I am writing because this issue is personally very important to me so as thoughts arise I
am forwarding them on.
I just read the WSJ article dated
1/19/10
which discusses this topic. I understand the intent behind the CFTC
effort which is to protect consumers. Requiring the dealers to better capitalized and provide some recovery
protection to consumers in the event a dealer goes bankrupt is understandable. Registration requirements are
fine and necessary as well.
My big issue is the leverage limitation of 10:1. This is severely restrictive and will force one of three outcomes in
my view: 1) traders will discontinue trading and some do this either for a living or as a significant supplement to
incomes during these difficult employment times; 2) traders will move offshore; 3) and this is the least attractive
outcome, traders will risk more capital in order to compensate for the lower leverage.
Please consider at least consider a tiering structure and allow us to manage risk ourselves.
