I heard that regulations are being considered by FINRA to make certain popular complex investments unavailable to by bought by general public, including leveraged and inverse funds.
Ive been using leveraged ETFs in particular for long time as investment and trading vehicles and Im very concerned that myself and other market participants will no longer be able to buy those ETFs. I personally know at least a dozen of other traders who have been using those ETFs as part of their trading strategies for years.
I would like to express my disagreement with the proposed regulations due to the following:
-Limiting public access to leverages and inverse ETFs will inevitably lead to drop in trading volume and liquidity on them and companies who manage them like Proshares and Direxion might consider stop supporting those ETFs as their popularity and liquidity drops. That would result in many traders suffer loss of income. This regulation would result in disruption of the stock market overall.
-Leveraged ETFs in particular are import part of my trading strategies, Ive been using them for years and would like to continue using. I normally sell options puts on leveraged market ETFs like TNA and TQQQ and also use them to protect my other investments. I use a variety of different trade and investment strategies, these are limited part of them but an important one
-Investors and traders not regulators should be able to choose the public investments that are right for them. Public investments should be available too all the public, not just the privileged ones
-Investors and traders should not go through any special process like passing a test before they can invest in public securities, like leveraged and inverse funds. Prospectuses for those funds are readily available for anyone to read and understand how they work and what risks they bear. I personally totally understand securities Im using to invest and trade and dont need those regulatory measures imposed on me
Please consider dropping that proposed regulation thats being considered.
Sergey Jimiruk Comment On Regulatory Notice 22-08
Dear FINRA,
I heard that regulations are being considered by FINRA to make certain popular complex investments unavailable to by bought by general public, including leveraged and inverse funds.
Ive been using leveraged ETFs in particular for long time as investment and trading vehicles and Im very concerned that myself and other market participants will no longer be able to buy those ETFs. I personally know at least a dozen of other traders who have been using those ETFs as part of their trading strategies for years.
I would like to express my disagreement with the proposed regulations due to the following:
-Limiting public access to leverages and inverse ETFs will inevitably lead to drop in trading volume and liquidity on them and companies who manage them like Proshares and Direxion might consider stop supporting those ETFs as their popularity and liquidity drops. That would result in many traders suffer loss of income. This regulation would result in disruption of the stock market overall.
-Leveraged ETFs in particular are import part of my trading strategies, Ive been using them for years and would like to continue using. I normally sell options puts on leveraged market ETFs like TNA and TQQQ and also use them to protect my other investments. I use a variety of different trade and investment strategies, these are limited part of them but an important one
-Investors and traders not regulators should be able to choose the public investments that are right for them. Public investments should be available too all the public, not just the privileged ones
-Investors and traders should not go through any special process like passing a test before they can invest in public securities, like leveraged and inverse funds. Prospectuses for those funds are readily available for anyone to read and understand how they work and what risks they bear. I personally totally understand securities Im using to invest and trade and dont need those regulatory measures imposed on me
Please consider dropping that proposed regulation thats being considered.
Thank you and best regards.