Comment Text:
i0-001
COMMENT
CL-07936
From:
Sent:
To:
Subject:
Sheree Fabian
Tuesday, March 16, 2010 2:36 PM
secretary
Regulation of Retail Forex
I would like to comment on R1N 3038-AC61. Recently there has been a push to regulate the forex
markets, which has needed some regulations. As far as I can tell from a traders perspective, the
regulation has affected the traders more than the brokerages. None of the new or proposed regulations
have stopped the widening of spreads or running of our stop loss points by the brokers or a variety of
other tricks the brokers play. These regulations do prevent me from trading in both directions on the
same currency even though I'm not trying to hedge. Different strategies will have you in a buy and sell
position at the same time, because the markets don't go straight up or straight down. Therefore one
strategy could be a long term strategy while a short term strategy could put the trader in
a "hedging" postion to capture that momentary counter move.
By increasing the margin requirements will ultimately put the small trader out of the forex market all
together.
As for myself, I will be looking at foreign brokerages, where I will be able to trade freely, if this new
margin rule is implemented. I'm sure many other small traders will be looking to do the same. This will
have a negative impact on the already struggling US economy.
I feel true regulation of the brokerages by stopping their underhanded practices of spread widening, stop
loss running and other unfair tactics would be more beneficial to the industry than regulating the
investors, which appears to me as to be what is happening with all the new rules being put in place.
Best Regards,
Sheree Fabian
