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Kevin Price Comment On Regulatory Notice 22-08

Kevin Price
N/A

The proposed rule penalizes average investors. Average investors should have the right to invest in vehicles that puts these investors in the same position as hedge fund managers. These hedge funds are not available to average investors. This rule puts them at a distinct disadvantage as investors as it removes a tool for average investors from their "tool belts".

For too long, the average investor has been put down below the professionals that control the market. This investment type helps evens the playing field.

For example, when markets are extremely volatile either up or down, taking advantage of this volatility for short periods through leveraged ETFs is the only way for the average investor to improve their returns. To take this away from these average investors is to hinder their success.

Take the current market. Assume you have a long position. You want to avoid trading fees and keep your long investments but realize the need to protect your long position. (This is happening right now!) So, you protect your long investments with a leveraged short position. This works well as you can cover a significant long position with a leveraged short position.

This is a regressive rule. It seems the government wants to regress in all of its actions/rules of late. This is just one more example. Put this rule aside as it hurst average people. I thought the government looked after average people (or investors.)