Comment Text:
i0-001
COMMENT
CL-00081
From:
Sent:
To:
Subject:
Cristi B
Friday, January 15, 2010 12:47 PM
secretary
Regulation of Retail Forex
Regarding the RIN 3038-AC61 proposal, a 10:1 leverage proposal isn't received favorably by some
members of the trading community because it will drastically cut the appeal for all forex related types of
financial instruments.
This proposal will increase the capital requirements for maintaining current profit levels for some
traders, which isn't an option for those with a) low capital, b) successful traders who are aware of the
risks, since they acknowledged risk disclosures when they have opened an account. This will limit the
market to the "big players", thus tossing out the window all the "small players". You should realize the
implications of this action.
Yet I must agree that this measure proposes to level the playing field in the trading business, but this
shouldn't be achieved by limiting the possibilities (thus freedom) of traders who are responsible for their
own actions, profits and losses.
Also, if the CFTC is interested in protecting the assets of individuals who acknowledge the risk
disclosures just to finish the paperwork, such measures should be done through alternative means, not by
limiting the leverage.
Thus, I'd like to submit a personal opinion on this matter, that of a flexible leverage proportional to the
size of the account.
Leverages should still be flexible between 10:1 and 50:1 as some brokers propose.
This measure offers a better environment on which most traders can still agree upon before they would
consider the otherwise.
All the other measures are welcome.
