The current SEC regulation requiring no more than 3x exposure for your investment is adequate. The etf I use is tqqq, there is no significant chance of a diversified etf going to zero. These etfs are valuable because they allow investors to increase exposure without the high amount of skill needed to manage options. The proposed change is bad for these investors, and it will drive investors out of etfs and into options, where if it is your goal you can attain much more exposure already. Investors will be at a great loss if they lose the ability to have a 3x etf manage their exposure and must attempt to trade options instead.
John Levine Comment On Regulatory Notice 22-08
The current SEC regulation requiring no more than 3x exposure for your investment is adequate. The etf I use is tqqq, there is no significant chance of a diversified etf going to zero. These etfs are valuable because they allow investors to increase exposure without the high amount of skill needed to manage options. The proposed change is bad for these investors, and it will drive investors out of etfs and into options, where if it is your goal you can attain much more exposure already. Investors will be at a great loss if they lose the ability to have a 3x etf manage their exposure and must attempt to trade options instead.