Comment Text:
i0-001
COMMENT
CL-07967
From:
Sent:
To:
Subject:
Lee Hendrick
Tuesday, March 16, 2010 3:54 PM
secretary
RE: Regulation of Retail Forex
I am writing to comment on the CFTC's proposed regulation (R1N 3038-AC61) of leverage
requirements in the retail foreign currency market (Forex). I am strongly opposed to lowering the
leverage requirements to 10:1.
I write as a JD/MBA/CPA 55 year-old who left teaching in the College of Business Administration at
the University of Tennessee when elderly parents needed a caregiver. In addition, my oldest daughter
has epilepsy and cannot drive. She will deliver her first child in May, and I will be the driver. Her
husband and my wife both work.
I have been trading my own account on the Forex market for over a year now. It is a way to have an
income and still be able to drop everything to attend to parents or my daughter. I do not oppose some
reduction in leverage limits, but 10:1 is too low. It some endeavors, 10:1 leverage would be too high,
but not in the Forex market.
While I routinely trade with 5:1 and 10:1 leverage, there are some instances when a greater leverage is
necessary. The risk is not as great as you might think. I believe that 50:1 would be reasonable. A 10:1
limitation would result in more negative trades and larger losses. It might force me from this career.
I know you have heard complaints about unfair competitive advantage for banks not regulated by the
CFTC. You also are likely aware of the unfair competitive disadvantage such low leverage
requirements would place on U.S. banks, Forex brokers, and traders like me.
Please do not promulgate the proposed regulation (R1N 3038-AC61) with such unacceptably low
leverage requirements as 10:1.
Thank you for your thoughtful consideration. I do not want to lose my income in this economy.
Sincerely,
Lee W. Hendrick
Lee W. Hendrick
712 Valley Dale Road
Knoxville, TN 37923
(865)691-0909 home
(865)924-9659 cell
