I think this proposed legislation is misguided and goes way too far. It would be like banning the sale of alcohol because some irresponsible people get drunk and hurt themselves. I have used both leveraged and inverse ETFs to hedge my portfolio. Recently I used such ETFs to protect my positions in fixed income securities. If I was forced to sell my bonds and preferred stocks the market makers would have made money and I would have had to pay a capital gains tax. This legislation would transfer money from small investors to rich and powerful market makers. Please don't do this.
Aaron Shafter Comment On Regulatory Notice 22-08
I think this proposed legislation is misguided and goes way too far. It would be like banning the sale of alcohol because some irresponsible people get drunk and hurt themselves. I have used both leveraged and inverse ETFs to hedge my portfolio. Recently I used such ETFs to protect my positions in fixed income securities. If I was forced to sell my bonds and preferred stocks the market makers would have made money and I would have had to pay a capital gains tax. This legislation would transfer money from small investors to rich and powerful market makers. Please don't do this.