Comment Text:
i0-001
COMMENT
CL-05283
From:
Sent:
To:
Subject:
joseph lam
Tuesday, February 9, 2010 5:25 PM
secretary
Regulation of Retail Forex
Hi,
I am writing in concerning the propose regulation of limiting retail
forex leverge to 1 : 10. I find this as an invasion of freedom and
overregulation. It should be up to the majority of educated and
informed investors to decide the amount of leverage needed for their
trading purposes. As long as risks are well-disclosed and investors
are well-informed, higher leveraging can actually facilitate as
innovative financial instruments and become part of a creative
solution in the mix of investor's tool bag. Limiting choices, freedom
and dictating the demands of every financial citizens is not fair.
It's not fair for the higher educated and/or more competent citizens
to pay the price of protecting investors at the lowest demonator of
financial knowledge. (It's better to force, for example, forex dealers
to disclose more, such as trails of every transactions- including
those that are betting against their clients - whether they are for
maintaining risks or liquidity.., having clients pass exams or get
license.., if realistically possible, etc.) Macro-economically
speaking, more choices provide long term stablizing effects. If goods
and services are not good or provide values to society, they die down
as part of business evolution eventually, unless there are malpractive
involved or they pry on the weak. Nonetheless, having goverment,
agency involved in deciding how to better provide and run businesses
is not good. There are better ways.
Regards,
Joe
