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Kyle Boas Comment On Regulatory Notice 22-08

Kyle Boas
N/A

Comments: Im concerned that FINRA will attempt to strip away the ability for these products to be used effectively by active traders who use these complex products for what they were made for, short-term active trading. I understand why you would want to help those who use these for the wrong reasons, such as long-term investing, what they were not made for.

I agree that brokers could do a better job educating traders and investors more about the risks and mechanics behind these products, but I think this would be a step back for them to impose limitations on those who know how to use the products.

Limitations such as a cooling off period would not make trading these products feasible. Its an unnecessary hurdle for those who know the risks and mechanics. It does nothing to educate, it simply hinders a traders ability to trade.

Reading certain materials and getting approval from your broker, like one would get approval for trading options, sounds like a reasonable suggestion. But any sort of limitations on trading once the broker ensures the trader is educated in using the product would in my opinion be an unnecessary overstep by FINRA.

Make the product safer by educating more without putting limits on those who know the mechanics behind the product and the risks associated.