Comment Text:
i0-001
COMMENT
CL-05101
From:
Sent:
To:
Subject:
George M. Groves
Saturday, February 6, 2010 7:03 PM
secretary
Regulation of Retail Forex
To whom it may concern:
This note is in opposition to the proposed Regulation of Retail Forex
RIN 3038-AC61
in which, it is
stated: "leverage in retail forex customer accounts would be subject to a 10-to-1 limitation," which
means 10:1 leverage would be the maximum amount allowed for all Forextraders in the U.S.
I am a small forextrader, trading a mini account of approximately £1000 with a leverage of 100:1. I
was severed/early retired from my job of 30 years in 2008. I am currently tapping my retirement
account for living expenses and plan to use the small gains in my trading account to offset those
living expenses. With a 100:1 leverage, I am able to realize a gain of £25 - £75 per trading day. If
the leverage is changed to a maximum of 10:1, this would relate to my only realizing £2.50 - £7.50
per day, effectively eliminating the cost benefit of forex trading, as well as eliminating the possibility
that I can make supplementary income from forextrading. I do not have an extra £10,000 cash to
fund an account.
If you pass this new regulation relating to leverage in the forex market, you will take away the
tradability of the market of millions of small retail traders like myself - returning market access to
only major traders or the international community. As millions of small retail traders like myself
close their U.S. brokerage accounts, I fear that this new regulation would also have the unintended
consequence of causing the staffs of these U.S. brokerages to be cut - adding to the unemployment
problems here in the U.S. I would also like to point out that as a small retail trader, I don't employ
high priced lawyers and accountants, so like the millions of other small retail traders, I actually pay
income taxes on the gains in my trading account.
I am not looking for a government handout or bailout. I just want you to consider the impact of
these proposed rules will have on "people".
I think you are proposing regulations for a problem that doesn't exist, and the proposed regulation
will have significant adverse consequences on the people of the United States. Again, I oppose the
new regulation.
George M. Groves
24W431 Cliff Court
Naperville, IL 60540
