Comment Text:
i0-001
COMMENT
CL-04913
From:
Sent:
To:
Subject:
B&S Cape Town
Thursday, February 4, 2010 2:42 AM
secretary
Regulation of Retail Forex
RIN 3038-AC6
To whom it may concern
I am a South African citisen with a retail forex account in US. I am currently member
of a Live Trading room and enjoy consistant results. This is partly due to myself managing
risk via lot sizing and money management techniques. Although I am able to trade larger lot sizes
I actively manage risk in all open positions as I see fit. The new proposal of 10:1 leverage restriction
will violate my ability to manage my portfolio of trades effectively given the startegies that employ.This after a
recent
100:1 restriction was put in place -did they make a mistake?
I feel strongly that the reduction of leverage will make US retail FX accounts very unattractive for
new and exsisting retail FX participants. This will most definately result in job loss and capital flowing out of
the US to more attractive brokers (and even unregulated ones!). There is allready brokers mentioning that they
will drop all US clients if
the new proposal comes into effect. If regulation needs to be increased why not rather focus on educating
prospective
FX participants? Does the average FX client needs to be protected from themselves?
I feel that the FX offers disadvantaged individuals( because of the "Big Dogs") to effectively participate in the FX
market and to
profit from it. Like any business there is risk involved - but within reason its the owners (read FX retail client)
responsibility to manage
his own risk.
Hoping for your positive consideration.
FX Trader
Cape Town
South FArica
