Comment Text:
i0-001
COMMENT
CL-05075
From:
Sent:
To:
Subject:
David Lollar
Friday, February 5, 2010 8:20 PM
secretary
Regulation of Retail Forex - 75 FR 3281 - Leverage
Hello David Stanwick,
I would like to comment on the proposals in "Federal Register", dated Wednesday, January 20, 2010,
subtitled "Part II, Commodity Futures Trading Commission; 17 CFR Parts 1, 3, 4, et al., Regulation of
Off-Exchange Retail Foreign Exchange Transactions and Intermediaries; Proposed Rule" (found at this
link: http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2010-456a.pdf). I hope
you do not enact the proposal to limit the leverage available to retail customers to 10 to 1.
This limit is unnecessary. The retail customer when placing a trade can choose the amount of leverage to
use, ranging from the minimum (e.g., 10:1) up to the maximum (e.g., 100:1). Since the customer can
choose the amount of leverage to use, there is no need for a fixed limit.
Some retail customers trade full time as their primary source of income. Limiting leverage to 10:1 would
reduce the amount of profits from trading to a much lower amount, essentially meaning this proposal
would make it impossible for a trader to make a living. This would be sad as it would be taking away
opportunities from the public.
Finally, without the opportunity, retail customers would not participate. This would severely affect the
retail brokers negatively, reducing their business a great amount. This would be very sad as the proposed
regulation would result in brokerages shrinking -- in other words, probably laying off employees.
It would be better to view this proposal in terms of its effects. It would take away opportunities from the
public, and result in layoffs. Whatever good intentions may have been behind this proposal, they are
greatly outweighed by the detrimental effects it would have. I would like to request this proposal not be
enacted.
thank you
David Lollar
