Erik Stoeckeler Comment On Regulatory Notice 22-08
Erik Stoeckeler
N/A
Comments: Hello Finra, Readx3. I enjoy using inverse ETFs. They are not complex. It accomplishes a similar result to shorting a stock but with out having to get a margins account. I personally don't trust myself to trade on margin. Many others don't either. It benefits me, because of its simplicity, it benefits the ETF/ETP maker because they can charge me a fee, and it benefits the market because it increases the ability of non-margin accounts to effectively short stocks without having to be a margins trader. Most importantly, for retail investors like me, It can be seen as a way to mitigate other risks. Like imagine if 1000 retail investors wanted to short a stock...well...now they can just buy a short ETF like SARK. But if you get rid of inverse ETFs, or make them harder to get, you will now have 1000 retail investors trying to get margin accounts, making for a bunch more apes making calls and puts and trading on 10 to 100 thousand of margin. That sounds way more risky than just allowing for retail to buy an inverse ETF. The leverage ETFs I don't use, so no comment on them. Thank you for reading.
Erik Stoeckeler Comment On Regulatory Notice 22-08
Comments: Hello Finra, Readx3. I enjoy using inverse ETFs. They are not complex. It accomplishes a similar result to shorting a stock but with out having to get a margins account. I personally don't trust myself to trade on margin. Many others don't either. It benefits me, because of its simplicity, it benefits the ETF/ETP maker because they can charge me a fee, and it benefits the market because it increases the ability of non-margin accounts to effectively short stocks without having to be a margins trader. Most importantly, for retail investors like me, It can be seen as a way to mitigate other risks. Like imagine if 1000 retail investors wanted to short a stock...well...now they can just buy a short ETF like SARK. But if you get rid of inverse ETFs, or make them harder to get, you will now have 1000 retail investors trying to get margin accounts, making for a bunch more apes making calls and puts and trading on 10 to 100 thousand of margin. That sounds way more risky than just allowing for retail to buy an inverse ETF. The leverage ETFs I don't use, so no comment on them. Thank you for reading.