Skip to main content

William Baker Comment On Regulatory Notice 22-08

William Baker
N/A

I am alarmed and disturbed by the prospect of FINRA regulating investments by blocking or impeding investors' access to them.

Hedging and leveraging with exchange-traded funds are cornerstones of my personal investment strategy. I can't afford to and don't want to invest in the futures market directly, and I don't think options offer a good risk-reward profile. Financial instruments that use futures provide a vital service for people in my situation.

I also trade on changes in market volatility. I don't think it's fair that only people with access to the futures market should be able to make these trades.

I also understand that exchange traded notes may be restricted. As an investor, I don't care whether a product is a fund or a note, as long as the issuer is financially sound and responsibly regulated so that I don't have to worry about defaults.

The idea that access to financial products that I use should be limited by education requirements or waiting periods is also misguided. Some of these products are unusually volatile, so extra disclosure requirements are in order, but they aren't so complicated that they require supplemental education. Unlike futures and options writing, it's impossible to lose more than the initial investment on an ETN or leveraged ETF.

I hope that FINRA will concentrate on protecting investors by carefully regulating product providers rather than restricting investors' access to products.