It is easy to understand that, in the long run, markets go up and that, therefore, an inverse fund that shorts an index is not a profitable long-term investment.
But it is also obvious it can be used to hedge long investments and limit the impact of a catastrophic downturn. And since it is related to an index, it is much less volatile and risky than many individual stocks.
Therefore, I don't see any reason to regulate its use more that that of any regular stock.
I do not have any comment to make on leveraged funds.
For the Public
FINRA DATA
FINRA Data provides non-commercial use of data, specifically the ability to save data views and create and manage a Bond Watchlist.
For Industry Professionals
FINPRO
Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks.
For Member Firms
FINRA GATEWAY
Firm compliance professionals can access filings and requests, run reports and submit support tickets.
For Case Participants
DR PORTAL
Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal.
Need Help? | Check System Status
Log In to other FINRA systems
Mr. Sater Comment On Regulatory Notice 22-08
It is easy to understand that, in the long run, markets go up and that, therefore, an inverse fund that shorts an index is not a profitable long-term investment.
But it is also obvious it can be used to hedge long investments and limit the impact of a catastrophic downturn. And since it is related to an index, it is much less volatile and risky than many individual stocks.
Therefore, I don't see any reason to regulate its use more that that of any regular stock.
I do not have any comment to make on leveraged funds.