Comment Text:
i0-001
COMMENT
CL-08762
From:
Sent:
To:
Subject:
Steve McMannis
Sunday, March 21, 2010 2:34 PM
secretary
Regulation of Retail Forex
To Whom It May Concern,
RIN 3038-AC61
I am writing to you at the CFTC today in regards to the proposed leverage changes. On which I would like to be clear that I am against, though can
understand the reasons for the proposed changes.
First I would like to address the CFTC's loss of original purpose in attempting to regulate leverage. According to cftc~, ov "Today, the CFTC assures
the economic utility of the futures markets by encouraging their competitiveness and efficiency, protecting market participants against
fraud, manipulation, and abusive trading practices, and by ensuring the financial integrity of the clearing process. Through effective
oversight, the CFTC enables the futures markets to serve the important function of providing a means for price discovery and offsetting
price risk. "
In no way, is limiting leverage a facility of any of those, and in fact places good retail traders at a significant disadvantage. In fact, I
could not at this point, nor want to trade forex because the profit potential would be unsubstantial in relation to my current account
size. Any regulations by the CFTC would make Forex trading an even more major bank and institution solo game. Trading, as I have
found out, the hard way over the past 12 months is all about risk/reward and rather than limiting leverage for every one in the industry,
the CFTC in my opinion would be better served in educating participants about risk management.
I hold a Series 3 license and as also as a Student understand the difficulty of trading in the Forex market, yet any of your proposed
changes would just make it more so. Possible accomplishments might include less blown accounts but at the same time disable an
entire set of independent traders.
Regards,
Steve NcNannis
BS Industrial Engineering 2012
University of Pittsburgh
[email protected] I 724.594.3569
