Comment Text:
i0-001
COMMENT
CL-07344
From:
Sent:
To:
Cc:
Subject:
Edward Newbold
Saturday, March 13, 2010 1:44 PM
secretary
[email protected]
Your "leverage limitation" proposal
Sir,
I would like to respond to your proposal that, "Leverage in retail Forex customer accounts would be
subject to a 10-to- 1 limitation."
A 10:1
leverage limit would mean that for me to be able to purchase a standard $100,000 lot, I will need
at least $10,000 of margin available in my account. This is not feasible and would severely hamper
retail forex traders on our country. It is an incredibly short-sighted proposal, and one that is absolutely
intolerable for me personally.
It is blatantly obvious to all that you are attempting to force small forex investors such as myself out of
the market! If passed, this proposal would force me, and thousands of other small retail forex investors
like me in the United States, to stop trading retail forex with US brokers.
Unfortunately, all it would really accomplish to to force us to open accounts with brokers outside of the
United States, thus reducing the US brokerage income stream while creating more hardship
opportunities for losses with unregulated foreign brokerages for small US-based traders like me. In
effect, all this proposal would actually accomplish would be to reduce and/or eliminate what little
governance and protections you might have been offering American investors to begin with.
Because of your repeated attempts to harm or eliminate the small retail forex trader, I am extremely
disappointed in your agency and its poor record of service to the retail forex community. However, you
can change my opinion. If you are, indeed, a conscionable agency that is really concerned with
safeguarding the rights of the individual trader, you will not pass this horrible piece of proposed
legislation!
Sincerely,
Edward F. Newbold
5657 Balkan Place
Columbus, OH 43231
Phone 614-207-3909
