Comment Text:
i0-001
COMMENT
CL-08925
From:
Sent:
To:
Subject:
John Pope
Monday, March 22, 2010 11:42 PM
secretary
Regulation of Retail Forex
RIN3038-AC61
I strongly oppose the CFTC's proposed change to limit retail forex traders' leverage to 10-to- 1. I
believe this will do much more harm than good.
I speak from experience. I have actively traded in the forex markets for a number of years and have
worked for a large forex website. In addition, I have considerable experience in working with
government regulations and policies from my military background. Among other things, I spent three
years in an inspector general's office and have seen my share of good and bad policy. Unfortunately,
this certainly belongs in the latter category.
At 100-to-1 leverage, traders can open smaller accounts and diversify their approach by trading multiple
currencies and strategies. The same traders will have to add significant funds to their accounts if the
new rules are enacted. Some will go into debt or use funds they cannot afford to lose. Many traders rely
on their forex profits as a source of part-time or even full-time income. With unemployment hovering
around 10%, this income will not be easy to replace.
Moreover, many U.S. based forex businesses will shrink or completely fold if 10-to-1 becomes the new
maximum. Brokers, introducing brokers, data vendors, educators and others could join the growing
ranks of the unemployed.
Thousands of traders have already written you with similar concerns. The feedback on this issue has
been very close to 100% in opposition to 10-to-1. Please remember your role as public servants. Listen
to those you serve and preserve the well-being of the U.S. forex industry and diligent forex traders
everywhere by keeping the leverage at 100-to-1.
Respectfully,
J.S. Pope
