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Xingyong Song Comment On Regulatory Notice 22-08

Xingyong Song
N/A

I oppose this restriction. First, some leveraged ETF like those 3X SP500 index, are actually less volatile than many individual stocks. If we restrict them, does it mean we need to restrict investing in many individual stocks ? Second, for people who would invest in these type of ETF, they will seek other ways to invest with leverage (such as borrowing money) if these ETFs are restricted. That will be even more risky. 3X ETF is managed by professionals and is safer compared to the case that investor directly do leveraging based investment. Third, adding more regulations will likely create more friction for retail investor to invest. Please do not do that. Thanks.