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Nate F. Comment On Regulatory Notice 22-08

Nate F.
N/A

Comments: As part of a long-term, diversified portfolio, a minor portion of my holdings lie in leveraged ETFs. The largest risk associated with these leveraged funds equates to nothing more than simple mathematics. An additional risk, which has already proven true in the past for other financial tools, is the prohibition of the common investor and trader from the use of these instruments.

I am constantly reminded by my broker of the risks associated with these leveraged funds through the various emails, articles, and warning banners they employ. Besides this, I am well aware of these risks due to my own research - the same research which should be undertaken before investment or speculation of any kind.

Any regulatory actions taken to restrict use of complex financial instruments will bar the common and informed investors and traders from yet another useful toolset available to financial institutions and high net-worth individuals. This comes at a time which would potentially maximize any negative impact of regulatory action, as we have entered a bear market which may last for quite a while.