Comment Text:
i0-001
COMMENT
CL-05130
From:
Sent:
To:
Cc:
Subject:
[email protected]
Monday, February 8, 2010 12:33 AM
secretary
[email protected]
Regulation of Retail Forex (R1N 3038-AC61)
Secretary Stawick:
I am strongly against the proposed reduction of leverage in Forex trading.
The proposed (RIN 3038-AC61) reduction in leverage, from 100:1 to 10:1, would reduce profit potential for the public while
actually exposing us to increased risk !!!!! Additionally, it would also decrease liquidity, which frequently leads to poor
order executions, decreasing profit to the public. The proposed changes would require more capital from the investor,
putting Forex trading out of reach for many of us, driving investors to seek other areas of investment with lower capital
requirements, such as option trading (which have greater risk and are much more difficult to trade successfully), or to trade
Forex overseas in an unregulated market. Consequently, it would force America's Forex dealers to move overseas,
eliminating jobs in the U.S. and reducing tax revenue to our country.
The Forex markets currently allow the small investor, many of whom have been badly hurt by the weak economy, the
opportunity to take a modest amount of money and potentially turn it into a meaningful asset, helping them to recover losses
from the current economic crises, to rebuild financial strength and increase retirement funds. And due to the high
unemployment, large numbers of families find themselves in a position where profits from Forex trading are their only
source of income. The proposed changes would eliminate these opportunities, destroying the small investor's chance to
improve his circumstances, and leaving people in danger of losing their homes and facing Bankruptcy.
Proper regulation does not harm the public, reduce its opportunities, or drive it to more dangerous investment environments.
The proposed change would be a disaster !! I urge you to reject the measure and leave Forex leverage at its current level.
Respectfully,
Thomas W. Zysk
CC: President Barrack Obama
Congressman Duncan Hunter
