It is heart-breaking to hear that you are considering to restrict retail investors to trade leveraged ETFs. I strongly object any limitation that might be applied on trading leverage ETFs.
It is my personal right to use the financial instrument that I choose to invest my own money. The leverage should be available to all of the public, not just the rich and privileged. Any restriction on my freedom to trade leveraged ETFs should be considered as unconstitutional.
Moreover, as retail investors, we well understand the risk and mechanism of leveraged and inverse funds. It is not necessary to waste our tax payers' money to put any additional measure to limit our investment in these wonderful financial instruments.
In additional, the leveraged and inverse funds are very important to me, which have been playing as one of my primary investment vehicles for years (and the profitable one!!). Any measures to limit the trading of leveraged ETFs will inevitably have significant negative impact on my way to chase financial benefit from the market, the very right that is making US a great country!
Last but not least, simple limiting or banning leveraged ETFs trading will not shield the retail investors from financial market risks. If these leveraged ETFs are shut down, we will have to shift to other financial derivatives for leverage, such as options and futures, which will definitely put us in more risky scenario. In fact, the leveraged ETFs are not increasing the risk that retail investors face but rather reduce the risk!
Please do not put any restrictions on leveraged ETFs. It is our right to trade the leveraged financial vehicles and the freedom to choose makes US a great country to invest!
Ethan H. Comment On Regulatory Notice 22-08
Dear FINRA,
It is heart-breaking to hear that you are considering to restrict retail investors to trade leveraged ETFs. I strongly object any limitation that might be applied on trading leverage ETFs.
It is my personal right to use the financial instrument that I choose to invest my own money. The leverage should be available to all of the public, not just the rich and privileged. Any restriction on my freedom to trade leveraged ETFs should be considered as unconstitutional.
Moreover, as retail investors, we well understand the risk and mechanism of leveraged and inverse funds. It is not necessary to waste our tax payers' money to put any additional measure to limit our investment in these wonderful financial instruments.
In additional, the leveraged and inverse funds are very important to me, which have been playing as one of my primary investment vehicles for years (and the profitable one!!). Any measures to limit the trading of leveraged ETFs will inevitably have significant negative impact on my way to chase financial benefit from the market, the very right that is making US a great country!
Last but not least, simple limiting or banning leveraged ETFs trading will not shield the retail investors from financial market risks. If these leveraged ETFs are shut down, we will have to shift to other financial derivatives for leverage, such as options and futures, which will definitely put us in more risky scenario. In fact, the leveraged ETFs are not increasing the risk that retail investors face but rather reduce the risk!
Please do not put any restrictions on leveraged ETFs. It is our right to trade the leveraged financial vehicles and the freedom to choose makes US a great country to invest!
Thanks and your sincere,
Ethan H.