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Chieh-Ling Hsieh Comment On Regulatory Notice 22-08

Chieh-Ling Hsieh
N/A

Although it might be good intention to enforce more rules and regulation for leveraged and inverse ETFs. The enforcement could create unfair conditions for investors. Leveraged and inverse ETFs might have their own unique characteristics. But once put on the market and traded freely by market participants, the market force will help regulate behaviors of investors. All investments have risk. And the leveraged and inverse ETFs do not presenet any more risk, than a company that could go bankrupt and wipe all value of common stocks. To regulate leveraged and inverse ETFs to narrow the group of investors eligible to invest, will only create unfaireness, without reducing risk for anyone.