While the leveraged products are controversial as longer-term investments, they are helpful for short-term hedging and trading. The unlevered inverse investments are extremely useful hedging tools for equity investors and don't have any of the drawbacks found with levered products. Restricting their use would be a disservice to the investing public who use occasionally need these tools.
There is already a mountain of disclosures required for these investments and the internet does a good job of educating the public on the basics.
I believe it is unreasonable to require investors to "qualify" or get licensed to trade using these tools. If there were numerous lawsuits or complaints about these products, then maybe new regulations would be required. I don't see a long list of unhappy investors, but you would know better than I.
Robert Lloyd Comment On Regulatory Notice 22-08
While the leveraged products are controversial as longer-term investments, they are helpful for short-term hedging and trading. The unlevered inverse investments are extremely useful hedging tools for equity investors and don't have any of the drawbacks found with levered products. Restricting their use would be a disservice to the investing public who use occasionally need these tools.
There is already a mountain of disclosures required for these investments and the internet does a good job of educating the public on the basics.
I believe it is unreasonable to require investors to "qualify" or get licensed to trade using these tools. If there were numerous lawsuits or complaints about these products, then maybe new regulations would be required. I don't see a long list of unhappy investors, but you would know better than I.
Thank you for considering my comments.