Many studies have shown that attempting to limit trading to only one direction in freely trading markets invariably fail. Generally, politicians love to jump on this bandwagon, largely due to their ignorance. Also, limiting flexibility through minimizing inverse funds that accommodate leverage will increase volatility, not decrease it. Do your homework.
Michael Marx Comment On Regulatory Notice 22-08
Many studies have shown that attempting to limit trading to only one direction in freely trading markets invariably fail. Generally, politicians love to jump on this bandwagon, largely due to their ignorance. Also, limiting flexibility through minimizing inverse funds that accommodate leverage will increase volatility, not decrease it. Do your homework.