Closing these funds now or limiting them is very damaging to investors already in them. I am sure you have the intentions of protecting people but if you must then may be start with options. Options expire and more dangerous. Leverged ETF could be held for a short or long term. Sincerely
The right to sell short in a stock market should not be limited to the super-rich. The average investors should have the same right through inverse funds. The risk should be borne by the investor himself, who should know what he is doing, and NOT forcibly eliminated by the seemingly good intention of the Regulators!
Comments:
This is to inform you that there is no need of enhancements to current rules for Brokerage firms. There is already a warning at Brokerage firms and that is sufficient. We know they are short term and monitor them daily. No change is needed. This is in regards to Leveraged and Inverse ETF's. Please do NOT limit access. I depend upon them!
I believe, having once invested in these funds, that they are not useful vehicles for investors. They are trading vehicles and should come with a big notification of such. They do not perform as one night expect and therefore should be closed out. Any trader can accomplish the same by either shorting the index outright or using derivatives.
The gambling of Wall Street must end. The entire world economy is at risk from the gambling of a few bad actors. Company's can be destroyed by dark money pools short selling and pushing down stock prices rather than their ability to perform for its clients and in the market place.
Please don't assume that investors don't understand the risk associated with leveraged investments. If you want to fix the market, then don't allow the short interest of a stock to exceed the total float of the long interest. Verify that ETN are properly backed so wild market swings can be covered.
There is no need for any additional regulation on these funds. The risk is spelled out on the prospectus. These products give the average investor the ability to trade the indexes, either long or short, in a reasonably priced fund, as opposed to trading the DIA at 338.00 per share. Level the playing field, not the other way around.
SUGGESTED ROUTING*
Senior ManagementLegal & ComplianceOperationsSystemsTrading
*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
As previously reported in Notice To Members 88-104, the NASD, beginning February 12, 1989, will require its members to respond to requests for trading data using an automated format. The format is consistent
INFORMATIONAL
Qualification Examinations
Implementation Date: April 29, 2005
SUGGESTED ROUTING
KEY TOPICS
Legal & Compliance
Operations
Registration
Training
Assistant Representative
Order Processing (Series 11)
Limited Representative Equity Trader (Series 55)
Rule 1032(f)
Rule 1041
Executive
Every share should be tracked with unique identifier. Every share should be located and lent once only. Every order should be delivered T+2 or fails mean 10x cost penalty. Every short position should be updated with FINRA daily.
