We should have the right to use inverse funds and leverage if we choose to as they provide hedges for market cyclicality. They also help to "make" markets. I've had an investment in inverse funds for years which has lost money but it hedges my other positions. Now if I'm force to sell these I'll loose all that potential value that I would gain back in a correction cycle. If you take that right from me it unfairly allows me to regain the losses I've incurred. Let markets operate freely and investors make their own choices.
Matt Elley Comment On Regulatory Notice 22-08
We should have the right to use inverse funds and leverage if we choose to as they provide hedges for market cyclicality. They also help to "make" markets. I've had an investment in inverse funds for years which has lost money but it hedges my other positions. Now if I'm force to sell these I'll loose all that potential value that I would gain back in a correction cycle. If you take that right from me it unfairly allows me to regain the losses I've incurred. Let markets operate freely and investors make their own choices.