Comment Text:
i0-001
COMMENT
CL-05311
From:
Sent:
To:
Subject:
John Davis
Wednesday, February 10, 2010 5:46 PM
secretary
Regulation of Retail Forex
Dear Sir:
I certainly oppose the proposed radical increase in effective margin requirements for forex trading accounts.
Citizens of the United States should be free to contract with brokers on any reasonable basis, without
unnecessary government intervention. The recent problems in the financial markets had absolutely nothing to do
with small traders, who are the ones who will be affected by this proposed heavy-handed regulation. Large
traders, investment banks and hedge funds, will be unaffected.
I am in favor of reasonable regulation of all markets, to maintain order and fairness. Up to this point the CFTC
has been reasonable in regulation of forex trading accounts. However, an arbitrary ten-fold increase in effective
margin is an unjustified imposition on individual freedom to contract, and has no justification by reasonable
regulatory concern. It seems to be "regulation for the sake of regulation."
The currency markets have been no more volatile in recent months than they have always been. When volatility
increases, margin requirements can be raised gradually to account for the increased risk, and relaxed when the
markets settle. There is no need to take the risky step of "hammering" the market with a capricious,
unresearched straitjacket of this magnitude.
I urge you to back off from your present seeming panic, and reconsider this proposed change. If you feel
margins are too low, increase them gradually, in small increases, and relax them when the need subsides.
The freedom of the marketplace is nothing to be taken lightly. If our economic system is to recover, it will
be accdomplished by large numbers of small businesspersons and traders, given reasonable breathing room by
our government overseers.
Please withdraw this proposed change, for the moment, and think the matter through.
Sincerely,
John W. Davis, Jr.
914 West Cuyler Street
P. O. Box 248
Dalton, Georgia 30722
Phone 706.277.4000
Fax 706.277.4004
[email protected]
