Limiting the public's ability to buy leveraged and inverse products is unnecessary and does a profound disservice to the average investor. These products serve an important role far beyond speculation. Inverse funds are extremely useful for hedging and protecting long term positions, and for many retail investors, are mathematically simpler and more straightforward than options. And re leveraged funds, mechanisms obviously already exist for brokerages to require additional margin for securities with greater price volatility. This seems to be an elitist solution in search of a problem that doesn't exist. Please kick it to the curb.
Matthew Bonner Comment On Regulatory Notice 22-08
Limiting the public's ability to buy leveraged and inverse products is unnecessary and does a profound disservice to the average investor. These products serve an important role far beyond speculation. Inverse funds are extremely useful for hedging and protecting long term positions, and for many retail investors, are mathematically simpler and more straightforward than options. And re leveraged funds, mechanisms obviously already exist for brokerages to require additional margin for securities with greater price volatility. This seems to be an elitist solution in search of a problem that doesn't exist. Please kick it to the curb.