Comment Text:
i0-001
COMMENT
CL-08024
From:
Sent:
To:
Subject:
JB Maverick
Tuesday, March 16, 2010 6:20 PM
secretary
proposed leverage regulation
Dear Secretary,
As an independent Forex trader, I am very concerned about the proposal
to reduce trading margins to 10: 1. Such a rule change would effectively
put myself and hundreds of thousands of other independent traders who
earn their living through the Forex market out of business and move us
into the ranks of the unemployed. However, as I'm not willing to lose the
business that I have taken years to build, rather than give it up, if this
10:1 margin rule is implemented I will simply move my trading account
out of the U.S., to a more "investor-friendly" country. I have no doubt
that tens of thousands of other traders would do likewise, thus massively
reducing the income of U.S. brokerage firms, who would then be forced
to lay off employees, again swelling the ranks of the unemployed.
What is this rule supposed to accomplish anyway? I ask because, as a
professional investor, I cannot see
any
benefit from it for
anyone
whatsoever. On the other hand, the potential harm from it - both to
individual investors and to the overall economy - is painfully obvious. I
read an interview where a spokesperson for your organization stated that
it's designed "to protect investors"? Protect them
how?
From
what?
Exactly what idiotic lack of logic leads one to the erroneous conclusion
that this rule change would somehow protect investors? - The only thing
it would protect them from is potentially making a profi!!
DON'T DO THIS. Do not make this egregious mistake, or
you
will be
blamed for the massive negative economic fallout that results. Don't be a
typical government bureaucrat - instead, LISTEN to the people: What do
you hear? - Do you hear an outpouring of support for this rule change,
or do you hear a roaring wave of protest against it? I am certain that my
letter here is only one of hundreds of thousands you have received on
this issue - and I would be surprised if even 20-30% of those letters voice
support for this proposal. So you might want to stop and consider being
called before a Congressional committee a year from now, amid an
aftermath of negative economic consequences, and having to try to
explain why you did something so harmful,
something that virtually no
one was in favor of.
Do you
have
an answer to that question - "Mr.
Secretary, if 9 out of 10 people involved in this industry told you that this
was a terrible idea, that would have huge negative consequences...why
did you do it?"Respectfully,
J.B. Maverick
io-ooi
COMMENT
CL-08024
