It poses a severe threat towards market fairness. It further discriminate retail traders or investors from choosing the financial products that fit their trading needs because institutional investors are free of using high leverage in their trading. We, as retail investors, are fully aware of conditions, fees and risks of leveraged index ETF. They should NOT be made available only to a small rich or privileged people. By limiting these products to retail traders, it will significantly raise the cost of building a portfolio that fits my goal of investing. By limiting these ETF, it will not only drive up cost of put and call options for index funds and also the cost of rolling over the these options over the time. This will only benefit brokers and further disadvantage the majority of the market participants, who mostly are retail traders. I strongly oppose the regulation to limit access to leveraged and inverse funds to retail traders.
Yan Qiu Comment On Regulatory Notice 22-08
It poses a severe threat towards market fairness. It further discriminate retail traders or investors from choosing the financial products that fit their trading needs because institutional investors are free of using high leverage in their trading. We, as retail investors, are fully aware of conditions, fees and risks of leveraged index ETF. They should NOT be made available only to a small rich or privileged people. By limiting these products to retail traders, it will significantly raise the cost of building a portfolio that fits my goal of investing. By limiting these ETF, it will not only drive up cost of put and call options for index funds and also the cost of rolling over the these options over the time. This will only benefit brokers and further disadvantage the majority of the market participants, who mostly are retail traders. I strongly oppose the regulation to limit access to leveraged and inverse funds to retail traders.