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Comment for Proposed Rule 75 FR 3281

  • From: David Wanamaker
    Organization(s):

    Comment No: 5381
    Date: 2/15/2010

    Comment Text:

    i0-001
    COMMENT
    CL-05381
    From:
    Sent:
    To:
    Subject:
    David of Chattanooga
    Monday, February 15, 2010 11:49 AM
    secretary
    Regulation of Retail Forex
    Dear CFTC Secretary,
    Regarding R1N 3038-AC61, which involves the current CFTC movement to reduce maximum forex
    market trading leverages from the current 100:1 level down to a 10:1 level.
    Passage of this regulation will harm the ability of the smaller trader to be able to trade in this market.
    Many of these smaller traders are trading full time for their full income and by doing this you will in
    turn cause them to lose their job and source of income. Your regulation of said market in the USA will
    give all traders in other countries undue advantage and cause a burden to peoples in your own country.
    We do not need this and if you are trying to regulate banks and large investors it will not hurt them at all
    as they already trade in that fashion.
    We as traders are fully aware of the risks of leverage.
    What we are NOT happy about is unscrupulous brokers and market makers who can internally
    manipulate market prices within their in-house trading client communities due to the highly
    UNregulated pricing of forex pairs. This would be a much more worthwhile focus for your
    efforts...making sure that TRUE interbank pricing is available for ALL forex market participants.
    By the way, your crackdown on the minimum capitalization requirements for FCM's was a GOOD
    thing. Those are the kind of constructive regulations that are welcome and beneficial to the markets and
    their participants.
    Regards
    David Wanamaker