If this becomes regulation, investors should be allowed a period of time to become in compliance before the regulation takes effect. Currently, leveraged etfs have been hit hard from the market correction. If investors are not given time to exit their position, they will be forced to sell shares at a loss. This is bad timing for this change to be implemented, and it should not take effect immediately if passed.
John Levine Comment On Regulatory Notice 22-08
If this becomes regulation, investors should be allowed a period of time to become in compliance before the regulation takes effect. Currently, leveraged etfs have been hit hard from the market correction. If investors are not given time to exit their position, they will be forced to sell shares at a loss. This is bad timing for this change to be implemented, and it should not take effect immediately if passed.