It has been a matter of great satisfaction over the years to see how the cost have decreased and the options have increased or individuals who personally invest. Much of this has arisen as a result of competition in the markets and individual investor interest.
It saddens me to learn that the FINRA is seriously considering regulations that would reverse this trend by limiting investors through
Preliminary Note: The requirements of this Rule are in addition to other existing member obligations under FINRA rules and the federal securities laws, including obligations to determine suitability of particular securities transactions with customers and to have a reasonable basis for any recommendation made to a customer. This Rule is not intended to act or operate as a presumption or as a
Please do not restrict the right to invest in leveraged ETFs.
I have a PhD and have published in economics journals, so I have some expertise in this area.
Investors are currently allowed to borrow up to 50% of the value of their investments, so it is already possible to achieve leverage through these vehicles. But when the value of those investments fall it can lead to margin calls that require
Leveraged ETF/ETN's are used as a short term balanced risk management strategy that should be available to all investors.
Primary uses are (1) offset a short term market index/asset class overbought/oversold condition without risking individual equity positions, (2) Reduce risk of owning an individual stock that could be subject to excessive price fluctuations, and (3) Balance a
I firmly believe everyone should be given the chance and freedom to invest in what they like as long as the risk is disclosed to them and they understand the risk. In my case I believe I fully understand the risks of leveraged ETFs before making my investments. Removing this freedom will definitely harm the efficiency of the market. Even if people's freedom in investments is reduced,
I strongly oppose any restrictions on my right to invest in securities. I have bought and sold securities for over 60 years including leveraged and inverse funds. I fully understand the risks involved. I have provided my broker with a statement that I understand the higher risks of training leveraged and inverse funds and I accept the risks. Nothing more is needed. I particularly resent any
We should be able to risk our funds in whatever manner we choose, so long as we aren't risking money we don't have. I am strongly opposed to any restrictions of pro shares. I should be able to trade additional levels of risk, as any public investment, without additional requirements or restrictions. This is my freedom, and my right to choose to do with my money as I deem fit.
Investors in todays world are much more aware of risks of investing than ever before in the past. Their risk appetite is not a simple measure of what instruments they could invest in as even equities, margin, options, etc allow them to take infinite risk. These regulations seem completely arbitrary and are not in touch with reality. A better and more productive step would be to provide better
I believe it to be unjust for FINRA to restrict the trading availability for certain products. As a trader of leveraged funds, I understand the risks associated with them. This is not where the entirety of my portfolio lies, but even it was I should have the right to allocate my funds however I may choose. I see your interest in limiting risk potential for traders, however I also believe it
I oppose your proposed restrictions on Leveraged and inverse investments. I use these fund to balance my investment strategies and actually to reduce investment risk. You do not have the right to place restrictions on these investments in a free economy. Let Capitalism function properly. The failure of those who take unnecessary risks should not limit those who educate themselves on these risks.