Font Size: AAA // Print // Bookmark

Comment for Proposed Rule 75 FR 3281

  • From: Jeff Levi
    Organization(s):

    Comment No: 6733
    Date: 3/10/2010

    Comment Text:

    i0-001
    COMMENT
    CL-06733
    From:
    Sent:
    To:
    Subject:
    Jeff Levi
    Wednesday, March 10, 2010 1:58 PM
    secretary
    Regulation of Retail Forex
    To whom it may concern:
    I'm prompted to comment on the proposed regulation of retail forex,
    because, try that I may, I can find no compelling reason to enact any
    such regulation.
    If your thesis is that it could curb excessive speculation, I can
    assure you that as a retail forex client, I well know that you could
    put every single retail forex trader on the planet on the same side of
    a currency trade and it wouldn't do a thing to counteract the dealings
    at the institutional level, let alone an irate (or determined) central
    bank. Let me say that I learned first hand many years ago that is
    unwise to try to trade against the Bank of Japan, the Bank of England,
    or most especially our beloved Fed.
    If it is your concern for the "naive"retail forex customer (and I'm
    sure that there are many) that is uppermost in your mind, let me
    remind you that we all sign documents of disclosure on risk, and that
    to trade such an account at all implies that one is an adult, and can
    therefore live with the consequences of their actions, come what may.
    Finally, the reduction of leverage to 10-to-1 where professional
    trades are carried out in $100,000 lots can only mean one thing: more
    money of mine being held by my brokers in order for me to trade as I
    do now, for no good reason at all. I don't see how that benefits
    anyone, except the brokers. In fact, such a regulation will likely
    drive traders to overseas accounts which will not be party to such
    encumbrances, siphoning money out of our economy and into someone
    else's; and surely, we can all agree, that we should want that money
    circulating within our own economy.
    I feel that I speak for many traders when I say that I hope that you
    will reconsider adopting this regulation that is likely not to do what
    your propose, and will put independent traders at a disadvantage to
    larger institutional interests, yet again.
    Sincerely,
    Jeff Levi