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Nathan Ray Comment On Regulatory Notice 22-08

Nathan Ray
N/A

As a retail investor, I do not wish to see so-called Complex Products subject to additional regulation. Every major trading platform provides lengthy disclosures about these products. All investors using these products already have the tools necessary to understand them and become familiar with the risks if they so choose. Further restricting access to these products by ordinary investors benefits no one, particularly if wealthy investors end up subject to fewer or no restrictions. Complex Products have unique advantages and their availability should not favor some over others.

Any restrictions will reduce trading volume, which limits information available to market participants and impairs the efficiency of markets to the detriment of all. Perversely, additional regulation may increase the risk of these products, since assets under management in certain products would presumably shrink as fewer investors would be permitted to trade.

Adequate disclosure and reasonable access to information are the only special protection investors need. Existing rules appear to be more than sufficient.