Daniel Sudzilouski Comment On Regulatory Notice 22-08
Daniel Sudzilouski
N/A
Leveraged ETFs currently provide some of the cheapest forms of leverage available to retail investors at a cost of less than 100 basis points above the daily fund rate. Furthermore, they provide inherent tax advantages in rebalancing when compared to alternative leverage methods such as opening box spreads, obtaining effective leverage through options chains, or managing futures contracts.
Not to mention, leveraged ETFs are safer to retail investors as they provide limited liability in preventing cost basis from going negative. In this regard, margin accounts can be more detrimental in risk management as an investor can loose, and be liable to, amounts higher than their principal balance.
It would be of more interest to impose regulation on margin rates provided by broker/dealers. For example, to accounts with low balances, Fidelity charged in excess of 8% in retail margin loans when the fund rate was almost zero. This is borderline scamming retail investors in comparison to brokers such as IBKR which provided competitive rates at ~2% to retail investors during the same time period.
For the Public
FINRA DATA
FINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.
For Industry Professionals
FINPRO
Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.
For Member Firms
FINRA GATEWAY
Firm compliance professionals can access filings and requests, run reports and submit support tickets.
For Case Participants
DR PORTAL
Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.
Need Help? | Check System Status
Log In to other FINRA systems
Daniel Sudzilouski Comment On Regulatory Notice 22-08
Leveraged ETFs currently provide some of the cheapest forms of leverage available to retail investors at a cost of less than 100 basis points above the daily fund rate. Furthermore, they provide inherent tax advantages in rebalancing when compared to alternative leverage methods such as opening box spreads, obtaining effective leverage through options chains, or managing futures contracts.
Not to mention, leveraged ETFs are safer to retail investors as they provide limited liability in preventing cost basis from going negative. In this regard, margin accounts can be more detrimental in risk management as an investor can loose, and be liable to, amounts higher than their principal balance.
It would be of more interest to impose regulation on margin rates provided by broker/dealers. For example, to accounts with low balances, Fidelity charged in excess of 8% in retail margin loans when the fund rate was almost zero. This is borderline scamming retail investors in comparison to brokers such as IBKR which provided competitive rates at ~2% to retail investors during the same time period.