Leveraged ETFs, including inverse funds are an important tool to everyday retail investors to hedge their assets and to increase their chances for successful investing and trading. These funds give the small investor an opportunity to compete with the big brokerage firms in a highly manipulated market, often fueled by high frequency trading of stocks, bonds, and options. I strongly reject the arguments that regulating these funds and requiring tests (probably written by the same high frequency traders) to determine eligibility will benefit the individual inverstor.
The large brokerage firms are likely lobbying strongly to require these regulations since they are most likely to benefit from control over their clients' funds. I frequently use these funds to hedge positions that I do not want to sell, even when there is a threat of significant
Glenn Cook Comment On Regulatory Notice 22-08
Leveraged ETFs, including inverse funds are an important tool to everyday retail investors to hedge their assets and to increase their chances for successful investing and trading. These funds give the small investor an opportunity to compete with the big brokerage firms in a highly manipulated market, often fueled by high frequency trading of stocks, bonds, and options. I strongly reject the arguments that regulating these funds and requiring tests (probably written by the same high frequency traders) to determine eligibility will benefit the individual inverstor.
The large brokerage firms are likely lobbying strongly to require these regulations since they are most likely to benefit from control over their clients' funds. I frequently use these funds to hedge positions that I do not want to sell, even when there is a threat of significant