Comment Text:
i0-001
COMMENT
CL-06749
From:
Sent:
To:
Subject:
bogdan romocea
Wednesday, March 10, 2010 7:31 PM
secretary
Regulation of Retail Forex
Hello,
I am writing to express my strong disapproval of the proposed 10:1 leverage cap for retail forex.
I don't think there's anyone operating under 100:1 (or until recently 200: 1) leverage who doesn't fully understand
the potential dangers and benefits of using high leverage.
In addition, there are clear and robust mechanisms which ensure that even in times of high volatility losses can't
spread through the system. The forex dealers won't let account balances become negative, and if you perhaps think
100:1 still makes dealers too vulnerable then why not address this issue directly by asking them to increase their
reserves and the like.
Against this background, I find the proposed cap to 10:1 a classic case of "we regulators know better than you
what's better for you". Clearly not true, and not something I'd expect to see in the US.
Kind regards,
Bogdan Romocea
