Comment Text:
i0-001
COMMENT
CL-04727
From:
Sent:
To:
Subject:
Giscard Nazon
Monday, February 1, 2010 12:53 PM
secretary
Regulation of Retail Forex
RIN 3038-AC61
Dear Regulator,
On November 30th, 2009, new regulation went into effect that resulted in setting the leverage to 1% in my
Forex account. This was a change from the 0.5% leverage previously associated with my account. I
believe the move was a sound one, as it encouraged me to seek a more balanced exposure to risk, which
was more appropriate to my available investment capital.
I oppose your current proposed leverage change to 10%. This will immediately put an end to the
possibility for me to supplement my income through Forex trading as has been the case for the past few
years. I cannot support a measure that will effectively favor larger participants in the market, which I do
not believe could be your intention.
I have read your proposal and believe in your best intentions. But be mindful that often the ills in a
system are not from the system itself, but the people involved. A lack of personal discipline and
excessive risk appetite will always be a trader's first threat in the market. People have labeled Forex
companies as scams. This is a gross lack of understanding in most cases. I suggest that you consider
how your agency could instead encourage or enven ensure the proper training of all market participants,
as education can in fact be the best protection to a Forex trader, along with other safeguared you aim to
put in place with the RFEDs. But by considering the proposed change to leverage, you are looking at a
measure that cannot be fairly applied to all and that I am afraid will miss an important point about risk,
which is the adequacy of one's knowledge and training to be involved in the forex market at first.
If the leverage change that will apply to me goes into effect, I believe I will have no choice but to conduct
my business where it may be still affordable.
I thank you for your time and consideration.
Giscard Nazon
