Comment Text:
i0-001
COMMENT
CL-04692
From:
Sent:
To:
Subject:
Fred Nerz
Sunday, January 31, 2010 8:22 PM
secretary
Regulation of Retail Forex
Dear Sir or Madam,
I am an independent retail FX trader in the US and am strongly opposed
to the proposal of limiting leverage to 10:1. This would require that I
submit additional margin funds into non-insured or protected accounts,
thus exposing me to greater risk in the event of bankruptcy of my Forex
broker. It will essentially put me out of business unless I can somehow
find a way around the rule.
There are many traders like myself who use leverage responsibly and pay
primary attention to risk management.
While some legislation such as requiring dealer registration,
appropriate reporting and responsible behavior of the brokers/dealers
could be beneficial in eliminating predatory "bucket shop" practices,
the arbitrary placement of leverage limits to protect traders against
themselves will be highly damaging to most of us.
Please do NOT consider the implementation of a 10:1 leverage
limitation. It may sound politically attractive, but it is not a good
choice.
Regards,
Alfred Nerz
