I'd like to share my comments concerning your contemplation of requiring certain restrictions, limitations and/or abolition of certain inverse, levered investment products. I have been using both of these types of products for years and feel they are important tools that individuals, like myself, can utilize to manage our financial assets in the stock markets. Both these tools, when properly used like hedges, can lessen volatility in my asset's price performance, and protect from extreme selloffs like March 2020.
If you feel some of the measures you are thinking of instituting are necessary, please don't saddle these restrictions on those of us that have been using these products for years. You could suggest new investors or investors who have never used these products be required to be restricted to the new rules.
Some products like $VIX ETN products may be good to restrict because the general public probably isn't aware of how these products are structured and are probably unaware that they can actually lose money, even if the VIX moves in the same direction the investor trades the fund.
I find it a bit hypocritical that the federal government feels that the general public needs to be "protected from itself" in regard to these products, but 15-20 years ago had no concerns or rules in place for the big Wall Street banks that were using massive leverage, derivatives, CDOs and all kinds of "swaps" in their investments. You know, the levered investments that swamped the whole country's financial system in 2006-2009 resulting in a trillion or so of PRINTED US currency to bail these same Wall Street banks and insurance companies out. Don't you think these institutions should have rules in place to "protect themselves" (and the rest of the country) from their stupidity?
Lester Telkamp Comment On Regulatory Notice 22-08
I'd like to share my comments concerning your contemplation of requiring certain restrictions, limitations and/or abolition of certain inverse, levered investment products. I have been using both of these types of products for years and feel they are important tools that individuals, like myself, can utilize to manage our financial assets in the stock markets. Both these tools, when properly used like hedges, can lessen volatility in my asset's price performance, and protect from extreme selloffs like March 2020.
If you feel some of the measures you are thinking of instituting are necessary, please don't saddle these restrictions on those of us that have been using these products for years. You could suggest new investors or investors who have never used these products be required to be restricted to the new rules.
Some products like $VIX ETN products may be good to restrict because the general public probably isn't aware of how these products are structured and are probably unaware that they can actually lose money, even if the VIX moves in the same direction the investor trades the fund.
I find it a bit hypocritical that the federal government feels that the general public needs to be "protected from itself" in regard to these products, but 15-20 years ago had no concerns or rules in place for the big Wall Street banks that were using massive leverage, derivatives, CDOs and all kinds of "swaps" in their investments. You know, the levered investments that swamped the whole country's financial system in 2006-2009 resulting in a trillion or so of PRINTED US currency to bail these same Wall Street banks and insurance companies out. Don't you think these institutions should have rules in place to "protect themselves" (and the rest of the country) from their stupidity?