Comment Text:
i0-001
COMMENT
CL-08299
From:
Sent:
To:
Subject:
Nick Rea
Wednesday, March 17, 2010 7:40 PM
secretary
Regulation of Retail Forex
To Whom This May Concern,
RE: RIN 3038-AC61
I am strongly opposed to the regulation change being consider by the CFTC with respect to the leverage
requirements in retail forex trading. Changing the maximum margin requirement to 10:1 will essentially
wipe out the entire retail forex industry.
In order for forex trading to be accessible to the general investing public in the US, the 100:1
leverage option is essential. A 10:1 requirement creates a barrier of entry that eliminates the vast
majority of market participants today.
Retail forex trading provides an investment vehicle allowing an ivestor of average means to achieve
above average income. This is driven by leverage. While high leverage creates an environment of high
risk, an informed investor understands how to manage that risk. I agree that an uninformed investor
could end up wiping out an account, but this could easily happen with equity or commodity investing.
Movements in the currency market are miniscule compared to other markets, the only way to achieve
similar results is to employ leverage. By removing this tool, the market ceases to be viable.
Lastly, in recent times it's become more and more apparent that large banking institutions have little
interest in ensuring the viability of the small investor, or the livelihood of an average US citizen for that
matter. By removing 100:1 leverage in the retail forex market, the large banks will again prevail and
retain nearly absolute control of an exciting market that offers great opportunities to build wealth for the
average investor.
Please do not remove the most critical piece of this expanding industry, it would be a major blow to me
personally and to the thousands of average investors like me.
Thank you for your time and consideration.
Nick Rea
Seattle, WA
