Comment Text:
i0-001
COMMENT
CL-05004
From:
Sent:
To:
Subject:
Mark Young
Thursday, February 4, 2010 2:37 PM
secretary
Regulation of Retail Forex
Dear secretary,
! must voice my opposition to the proposal to reduce forex leverage further, down to as low
as 10:1 ! understand.
DO NOT DO IT. DO NOT DO IT. DO NOT DO IT. DO NOT DO IT.
Additionally, I would like to express my opinion that the CFTC made a HUGH
MISTAKE when it eliminated any practical way to hedge positions in forex. Unlike futures,
there are no other contract months with which to hedge effectively. There is not enough
reliable correlation between say the EUR/USD and GBP/USD to use this as a
predictable hedging strategy. If I'm long any futures contract, currency, grains, etc, etc, and !
decide to hedge that position with a short position, all I need to do is sell the next contract
period and there is a direct correlation. Where is that same alternative in forex that you took
away? It no longer exists because the CFTC eliminated it. Please reinstate the hedging
ability as without one, you are tying the hands of traders, reducing their options to protect
themselves in the market, and thus doing a disservice to those you seek to protect.
Sincerely,
Mark Young
