Comment Text:
i0-001
COMMENT
CL-08453
From:
Sent:
To:
Subject:
Neill Treasure (Bruton Capital)
Thursday, March 18, 2010 9:24 AM
secretary
Regulation of Retail Forex
Dear Sir
I write regarding the proposed limit of leverage in
retail Forex transactions to 10:1.
From my experience and observations of the market
this is likely to result in the following:
Many retail traders will be forced off shore,
where no such limits will apply. This is a global
market. Many will find themselves trading from
countries with far less protection than they
currently have.
Reduced liquity for small traders will follow. It
will be harder to enter the market as a small
trader, larger trade stakes will be required, and
greater market volatility will be encouraged
3. This increased barrier to entry will be harmful
to the US forex industry, and to the owners and
employees of those businesses.
I am sure this cannot be the intention behind this
legislation. I feel better protection would be offered
by encouraging trader education for new traders, and
by the continued risk warnings, displayed on many
brokers websites.
I would therefore urge you to abandon this plan for
limiting leverage, which although well intentioned
can only have harmful effects.
Finally, I would add that inreased protection from
frauds, scams and ponzi style schemes would also be
to everyones benefit.
Yours sincerely
Neill Treasure
Ref
RIN 3038-AC61
