Dear FINRA,
I am having a difficult time understanding why you may want to regulate complex investments. Ive been a stock and ETF investors for years. A core part of my investment strategy is the use of Leveraged and Inverse ETFs.
I prefer these instruments over options as options 1) have expiration dates, 2) are manipulated with changing spreads based on volatility and lastly 3) are more complex than the complex Leveraged and Inverse ETFs you are targeting.
Sure, options have their place in an investors strategy (as do Leveraged and Inverse ETFs) and someday I may find a place to use them.
Further, I feel it is me that should determine what investment instruments I use. Not FINRA!
I should not be required to pass any type of competency test based on my knowledge of these complex investments any more than I would need to do so for trading options. I have read the prospectuses of these complex ETFs and I am aware of the risks involved. I do not need tests imposed on me for FINRAs benefit.
Overall, I cannot imagine not using Leveraged and Inverse ETFs. These instruments are easy to understand and I use them often. FINRA should not impose ANY restrictions, limitations or testing on my free will to trade these investments you deem complex!
George Sargent Comment On Regulatory Notice 22-08
Dear FINRA,
I am having a difficult time understanding why you may want to regulate complex investments. Ive been a stock and ETF investors for years. A core part of my investment strategy is the use of Leveraged and Inverse ETFs.
I prefer these instruments over options as options 1) have expiration dates, 2) are manipulated with changing spreads based on volatility and lastly 3) are more complex than the complex Leveraged and Inverse ETFs you are targeting.
Sure, options have their place in an investors strategy (as do Leveraged and Inverse ETFs) and someday I may find a place to use them.
Further, I feel it is me that should determine what investment instruments I use. Not FINRA!
I should not be required to pass any type of competency test based on my knowledge of these complex investments any more than I would need to do so for trading options. I have read the prospectuses of these complex ETFs and I am aware of the risks involved. I do not need tests imposed on me for FINRAs benefit.
Overall, I cannot imagine not using Leveraged and Inverse ETFs. These instruments are easy to understand and I use them often. FINRA should not impose ANY restrictions, limitations or testing on my free will to trade these investments you deem complex!