The ability to freely access leveraged and inverse investment products allows even the small investor both opportunity and protection from market volatility. True, there are some who use these freedoms unwisely, but that is true of anything. Existing safeguards and regulations, in my opinion, are sufficient for the majority of investors, and risk and foolish choices will never be squeezed from investing. Risk assets are just that. Inverse products in particular serve as insurance for market gains during periods of increased volatility. Severely restricting their access would in my opinion, only serve to remove that protection, and the peace of mind such insurance provides.
James Messmer Comment On Regulatory Notice 22-08
The ability to freely access leveraged and inverse investment products allows even the small investor both opportunity and protection from market volatility. True, there are some who use these freedoms unwisely, but that is true of anything. Existing safeguards and regulations, in my opinion, are sufficient for the majority of investors, and risk and foolish choices will never be squeezed from investing. Risk assets are just that. Inverse products in particular serve as insurance for market gains during periods of increased volatility. Severely restricting their access would in my opinion, only serve to remove that protection, and the peace of mind such insurance provides.