As an investor, I should not be limited in my right to purchase levered or inverse ETFs. These instruments can allow me to generate outsized returns under certain market environments and are a complementary hedging strategy. We live in a world where the dispersion of returns between ultra high net worth individuals and retail investors continues to get larger. Taking away a powerful tool from retail investors' toolkits is a step back with regard to improving the regulatory landscape. Please focus on improving disclosure requirements for issuers and broker dealers instead of creating barriers to entry for investors.
Thomas Noriega Comment On Regulatory Notice 22-08
As an investor, I should not be limited in my right to purchase levered or inverse ETFs. These instruments can allow me to generate outsized returns under certain market environments and are a complementary hedging strategy. We live in a world where the dispersion of returns between ultra high net worth individuals and retail investors continues to get larger. Taking away a powerful tool from retail investors' toolkits is a step back with regard to improving the regulatory landscape. Please focus on improving disclosure requirements for issuers and broker dealers instead of creating barriers to entry for investors.