Comment Text:
i0-001
COMMENT
CL-04139
From:
Sent:
To:
Subject:
Darren Dallas
Tuesday, January 26, 2010 7:06 PM
secretary
Regulation of Retail Forex
David Stawick, Secretary
Commodity Futures Trading Commission
Identification #: RIN 3038-AC61
David,
I would like to strongly voice my opposition to the lowering of the leverage requirements in the retail Forex
market. I manage a spot forex hedge fund and this would have a negative impact on my performance. I can
appreciate what you are attempting to accomplish, but the proposed regulation will harm
companies/funds/investors that have sound money and risk management practices. This regulation will not
lower the amount of risk I take on it will only harm my performance. It will require that I maintain a larger
portion of my funds assets in my trading accounts as opposed to money markets or CD's at financial institutions.
It won't be a matter of lessening my exposure, but simply where my money is parked.
If your attempt is to make risky speculators more prudent in their money and risk management techniques, well
I'm not sure that should be anyone's responsibility. They are part of the market and if they wish to take on
those levels of risk, well let them. They should be evaluating their risk as a % of total assets, not that they can
leverage up 100 times on their $1,000 investment.
I hope this proposed change does not take place, as it appears to be a hand holding exercise for those that do
not fully understand there level of risk, and therefore should not be investing period. If you are looking for a
place to regulate, regulate who can trade, make everyone take and pass the series 34.
Regards,
Darren Dallas
Darren Dallas
Managing Partner
[email protected]
Five Star FX Management, LLC
1302 Waugh Dr., Suite 220, Houston, TX 77019
C281.857.7547 I F281.605.5050
www.fivestarfx.com
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