Hello, In regards to the Regulatory Notice issued by the Financial Industry Regulatory Authority (FINRA) on March 8, 2022, I would like to express my concern as to the potential limits this rule will impose on some investors for buying and selling of the leveraged and inverse funds or other products deemed to be complex in nature. I regularly use these products as a focal point of my trading strategy. They increase the Sharpe ratio of my portfolio and provide me with an acceptable level of return. I would not be able to implement my strategies without having access to these products regularly and will inevitably have to take on additional risks which I am not willing to accept. I understand the inherent risks of using these products and I do not want a third party to evaluate my understanding before granting me the opportunity to trade them. If FINRA believes that additional education is helpful in augmenting investors understanding of these products, by all means, provide them as a free resource but not as a prerequisite. FINRA has a long-standing tradition of providing educational information for investors on its website. I welcome the opportunity to increase my knowledge of these products and the techniques to utilize them more effectively at my own pace and free of charge. I, additionally, oppose an investors net worth and other such criteria to be the deciding factor on who can trade these products. Public investments should be available to all of the public, not just the privileged. The first message I see on FINRAs website is: A vibrant market is at its best when it works for everyone. Lets keep it that way. I especially cannot imagine to be restricted from trading these products during certain blackout periods. That would exert additional yet unnecessary risks to my investing. I appreciate FINRA preserving the long-standing free public markets where investors have the freedom to buy public securities without additional imposed limitations on investors' choice. Thank you in advance for your consideration.
H.G. Comment On Regulatory Notice 22-08
Hello, In regards to the Regulatory Notice issued by the Financial Industry Regulatory Authority (FINRA) on March 8, 2022, I would like to express my concern as to the potential limits this rule will impose on some investors for buying and selling of the leveraged and inverse funds or other products deemed to be complex in nature. I regularly use these products as a focal point of my trading strategy. They increase the Sharpe ratio of my portfolio and provide me with an acceptable level of return. I would not be able to implement my strategies without having access to these products regularly and will inevitably have to take on additional risks which I am not willing to accept. I understand the inherent risks of using these products and I do not want a third party to evaluate my understanding before granting me the opportunity to trade them. If FINRA believes that additional education is helpful in augmenting investors understanding of these products, by all means, provide them as a free resource but not as a prerequisite. FINRA has a long-standing tradition of providing educational information for investors on its website. I welcome the opportunity to increase my knowledge of these products and the techniques to utilize them more effectively at my own pace and free of charge. I, additionally, oppose an investors net worth and other such criteria to be the deciding factor on who can trade these products. Public investments should be available to all of the public, not just the privileged. The first message I see on FINRAs website is: A vibrant market is at its best when it works for everyone. Lets keep it that way. I especially cannot imagine to be restricted from trading these products during certain blackout periods. That would exert additional yet unnecessary risks to my investing. I appreciate FINRA preserving the long-standing free public markets where investors have the freedom to buy public securities without additional imposed limitations on investors' choice. Thank you in advance for your consideration.