Comment Text:
i0-001
COMMENT
CL-08426
From:
Sent:
To:
Subject:
Barry Chin
Thursday, March 18, 2010 5:58 AM
secretary
Regulation of Retail Forex
To: David Stawick:
Re: Regulation of Retail Forex RIN 3038-AC61
Mr. Stawick:
I am sending this email to express my concerns about the proposed changes to Forex regulations, in particular, the
proposed change in leverage. The rationale stated by FINRA for this change is based on the assumption that traders do
not use leverage properly. The FINRA proposal fails to recognize that leverage merely allows a trade to exercise more
precise risk management in relation to the size of their positions. Having leveraging capabilities allows a trader to adjust
the size of their stop dynamically, while still maintaining a fixed position risk. Moreover, not having adequate leverage
available will punish the traders who are already exercising appropriate risk management. Leverage reduction would
actually increase the risk of a margin call when risking the same amount in both scenarios. The bottom line is that the
expected end result would be US based traders investing their money with overseas brokers.
Thank you for your attention.
Barry Chin
398 S. Roosevelt Ave
Pasadena CA 91107
