Comment Text:
i0-001
COMMENT
CL-04573
From:
Sent:
To:
Subject:
richard zygadlo
Saturday, January 30, 2010 9:50 AM
secretary
Regulation of Retail Forex
Dear Secretary,
Regarding the proposed change to Regulation of Retail Forex (ID number RIN 3038-AC61), my position is no change is
warranted.
The CFTC recently changed to leverage requirements in 2009 requiring investors to maintain a higher margin reducing a
considerate amount of speculation. Ideally, the rationale for the change should be thoroughly analyized and I trust experts
within GFT and other brokerages will collabratively work with each other and the CFTC to determine both the liquidity
impacts and market efficiency of increasing retail investors requirements in the FOREX community. Increases on leverage
requirements may not necessarily reduce currency volatility and may prove otherwise as transactions are reduced in the
marketplace. Behavioral Finance and other mandated educational classes on money management and entry/exit decisions
should be considered (possible mandated) for retail investors rather than the increased leverage requirements and may prove
beneficial into the decision making process and why human nature is so loss averse (clearly why typically we hold our losers
and
release our wirming trades).
Regarding speculation in equity options vs. FOREX community, analysis between the two may indicate more speculation is
option community considering the latter is also a depreciating asset.
Once again, feel free to place my name on a list requesting no change to current FOREX requirements regarding retail
investors.
Lastly, if the CFTC does mandate a leverage increase, I will consider opening an account overseas to continue with trading in
the FOREX community.
Sincerely,
Richard M. Zygadlo
Account#480911
Retail Investor
