This comment is to urgently oppose new regulations on so-called "complex products." As an investor with over a decade of experience, I am neither a professional, nor a novice. But the notion of regulating leveraged and inverse products is nonsensical. These products are far and away the easiest to understand of any ETFs/ETNs available to retail investors.
A "complex
The only way to make money in a down market is by shorting stock, buying put options, or buying inverse ETFs. Inverse ETFs are the least risky. If you restrict one's access to inverse ETFs, you are forcing them into riskier trades.
Short interest needs to be reported everyday, just like volume and institutional holdings this is vital information to prevent over shorting a stock or non compliant behavior that limits price discovery and normal market dynamics.
Summary
FINRA requests comment on a proposal to facilitate centralized access to members’ order execution quality reports for NMS stocks that are required to be published by market centers under Rule 605 of Regulation NMS. Under the proposal, FINRA members would be required to provide their Rule 605 reports to FINRA, which FINRA would publish in a centralized location on the FINRA website.
The current practice of short interest reporting is flawed, as Market Makers are legally allowed to naked short for the sake of liquidity, and have means to "clear" FTD's without needing to buy the underlying stock. The enhancements proposed by FINRA would greatly enhance the visibility of short interest in the market, and allow investors to choose stocks wisely while being able to
Do not allow options mechanics or trading between parties to hide short positions. Also, make short positions greater than 2% of a stock’s outstanding shares public knowledge and require reporting in filings.
Individuals should be able to decide how they invest their money. leveraged ETFs are not nearly as bad as investing in "meme stocks" or options trading. Regulating buying ETFs at the start of a bear market is irresponsible and likely something to make people sell their ETFs at a loss.
I want my 3X Leveraged ETFs. I understand that they are very volatile. I experienced the 2020 downturn and the current one. Yet, my stock portfolio is still positive and I'm carrying a very healthy profit. Don't take my leveraged ETFs away.
I strongly object to further regulation of investors to buy leverage and inverse funds.
I rely on these funds to protect against the fall in value of my stock investments that I do not wish to sell in down markets.
I don't need more regulations to make investment decisions!!
I use leveraged ETF's to meet my stock market % goal, while tying up less of my capital. I can therefore generate greater income by having more capital for income oriented investments. I understand the risks and use them appropriately.
