Comment Text:
i0-001
COMMENT
CL-08801
From:
Sent:
To:
Subject:
Daryl Hendricks
Sunday, March 21, 2010 10:37 PM
secretary
Regulation of Retail Forex (R1N 3038-AC61)
Sirs,
Restricting leverage to 10:1 in retail forex is a poor policy choice. There will be several likely results--
l) US forex traders will move their funds in rapid fashion to foreign trading firms, and 2) US forex
trading firms will shut down or go bankrupt, hurting the firms, the employees of those firms and their
customers.
Essentially, the question has to be asked--what principle is the CFTC proposing here? As long as there
is transparency in a market, that market is very likely to operate in a fair and worthwhile fashion.
Indeed, the areas where the US and the global economy have suffered is precisely in those markets
where there has been a lack of transparency; where the instruments were overly complex, and
encouraged massive and wrong headed speculation. This is not the forex market. The rules are
generally clear; the markets efficient and there is little evidence of traders or trading firms engaging in
market manipulation.
I strongly urge the CFTC to focus on issues of maintaining market transparency and fairness rather than
taking this draconian measure of changing the leverage rules--this will destroy both the market and the
opportunity created by the market in the United States.
Daryl & Marcia Hendricks
Philadelphia, PA
RIN 3038-AC61
