Comment Text:
i0-001
COMMENT
CL-08032
From:
Sent:
To:
Subject:
Hugh Kimura
Tuesday, March 16, 2010 7:24 PM
secretary
Regulation of Retail Forex
Dear Mr. Stawick,
I wrote to you before, but there are a few other points that have come to my attention regarding the
reduction of leverage in this proposal and something that has been left out from these regulations.
Again, I agree with the other regulations that you want to put into place, but I strongly disagree with the
proposed leverage change. As I mentioned before, changing the leverage will not protect traders who do
not know what they are doing and only serves to punish other traders who know how to manage the
risk. The same thing goes for anything in life. Should we ban motorcycles because a lot of people get
seriously injured every year? Of course not. I feel that the leverage restrictions imposed by the NFA are
fine and they should be kept that way.
In preparation for any changes, I have established two trading accounts in the UK where they are
allowing me 400:1 leverage and those accounts have been working out well. If this leverage change
takes place, I will move all my trading money into these accounts and I suspect so will a majority of
other professional and part-time traders in the US.
This may cause a run at the US brokers and they may not have enough money on hand to meet the new
proposed requirements for financial stability. Should this happen and they have to declare bankruptcy
as Refco did, from what I understand, retail forex accounts are not protected under the bankruptcy laws
and we would lose all of our accounts. If you want to protect retail forex traders, this may be something
you want to add to these regulations. Futures traders are protected and would get all of their money
back in case of a broker bankruptcy, why not forex?
In addition, reducing forex leverage does not make sense. Futures brokers can offer more than 10:1
leverage, why not forex?
Forex is much safer than futures because I can only lose what is in my account. If a futures contract
goes limit up/down for several days in a row, there is no limit to what I could lose. This is one of the
reasons I love trading forex (and there are no limit days in forex).
I agree that there needs to be regulation in the forex industry to stop the scammers. However, please do
not punish us as traders. I strongly believe that we should have the right to trade the way we want to
trade and not be restricted to the opinions of a few people who think they know what is best for
everyone. This is America, we should have that choice!
From what I hear, you are taking public opinion on this matter seriously and I want you to know that I
sincerely appreciate that. Thank you for your time.
Kind Regards,
Hughi0-001
COMMENT
CL-08032
RIN 3038-AC61
Trade Well. Live Well. Be a Hero.
http://www. TradingHeroes.com
