Comment Text:
i0-001
COMMENT
CL-04368
From:
Sent:
To:
Cc:
Subject:
David Williams
Thursday, January 28, 2010 1:53 PM
secreta ry < secreta ry@ C FTC. g ov >
[email protected]
Regulation of Retail Forex
I would like to request that the CFTC not implement a 10:1 leverage limit on Forex transactions in
the U.S. I feel that this limit would serve no useful purpose and would make
trading more difficult for retail participants. I have been a futures trader in the past and I know
that forex trading already has safeguards built into it such as forex trades being liquidated long
before an account reachesa negative balance as can happen in futures trading. This proposed
limit seems to be an overreaction due to the current feeling that derivatives trading caused an
economic collapse whereas the blame probably lies with the U.S. Congress failing to deal with the
problems which Fannie Mae and Freddie Mac had.
I feel that when the CFTC takes an objective look at this relatively small retail industry you will see
that it would be helped by leaving the leverage where it is and not imposing a 10:1 limit. Please
realize that the much larger equity and futures trading industries in the U.S. will probably not be
speaking out against this proposed forex leverage limit since the current higher leverage limit in
forexisa disadvantage for stock and forextrading in comparison. Therefore it is up to the CFTCto
take a stand and help retail forex traders by keeping leverage limits where they are and not
making this pointless change.
Thank you,
David Williams
