I use leveraged products from Proshares and Direxion as part of my portfolio.
I have read, understood the prospectus and know they behave as expected (by simulating and backtesting over flat/medium/extreme market or different timeframe scenarios).
They deliver asymetric risk profiles that are great tools to enhance returns and limit losses, if managed responsibly.
I now use them as part of hedging or directional strategies, in a small part of my portfolio.
I live in Europe, work in the banking industry and we have already MIFID rules, so I understand the regulatory needs behind.
However, as a retail investor, I am especially against limiting these products to high net worth.
Firstly, what is a high net worth ? Is there a definition that stands in all countries where these products are sold ?
Could these restrictions lead non-qualified people to take more risks (by using margin for example) ?
I am thinking of the latter case in particular in these high volatility period we are experiencing in the Equity markets.
Alex Comment On Regulatory Notice 22-08
Hello,
I use leveraged products from Proshares and Direxion as part of my portfolio.
I have read, understood the prospectus and know they behave as expected (by simulating and backtesting over flat/medium/extreme market or different timeframe scenarios).
They deliver asymetric risk profiles that are great tools to enhance returns and limit losses, if managed responsibly.
I now use them as part of hedging or directional strategies, in a small part of my portfolio.
I live in Europe, work in the banking industry and we have already MIFID rules, so I understand the regulatory needs behind.
However, as a retail investor, I am especially against limiting these products to high net worth.
Firstly, what is a high net worth ? Is there a definition that stands in all countries where these products are sold ?
Could these restrictions lead non-qualified people to take more risks (by using margin for example) ?
I am thinking of the latter case in particular in these high volatility period we are experiencing in the Equity markets.
Regards,
Alex.