Comment Text:
i0-001
COIMMENT
CL-08466
From:
Sent:
To:
Subject:
Gregory Panos II
Thursday, March 18, 2010 10:17 AM
secretary < secretary@ C FTC. g ov >
Regulation of Retail FOREX: Proposed Leverage Change
Dear Mr. Stawick, Secretary CFTC,
I have received information from Advisories/Societies I have membership with, and my brokerage
regarding the proposed regulation from the Commodity Futures Trading Commission
(CFTC), planning to set a 10:1 leverage as the maximum amount allowed for retail FOREX traders
in the U.S. I want to give you my take on this issue.
It has been said the CFTC in reducing leverage wants to protect retail traders from excessive risk-
taking, I feel that's not the real reason. I suspect the real motive behind this proposed regulation
is to protect special interests from CME. If the leverage is limited to 10: 1, theCME (Chicago
Mercantile Exchange) would get a lot of new business because it would still be able to offer higher
leverages. AIotofretail FOREXtraders would stop trading, migrate to the futures markets, or
move their accounts to the UK, where there's no such proposal.
I see this proposal as an assault on the freedom of individuals to choose their desired risk. The
truth is that lower leverage will not stop traders who like to gamble with their money, traders who
lacka proper risk management strategy. They will just find another way to gamble. As a
professional trader, I do not worry about leverage because I manage money in a conservative
fashion; one which is anything but near to gambling! I only accomplish trades, once I have
comfirmed my beliefs and received recommendations from ultra-reliable sources, that
the trades/odds are in my favor. Therefore, I believe and knowa leverage of 25:1 is reasonable,
as long as you have a solid money management strategy that limits your risk.
Beforea final decision can be made, theCFTC has requested comments from the public. I know
that as of March 1, the CFTC's "request for comment" regarding its proposed 10:1 cap on FOREX
leverage has triggered many responses; this is mine! Any action away from the current long-
standing practices is a definitive step away from those principles established by our founding
fathers and which have been adopted and molded to stir the practices and liberties of a capitalist
society, practicing democracy. This is not an area where politics need enter into these practices.
Respectfully,
Mr. Gregory P
osII
817.829.4915 (Cell)
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