The ability to trade inverse ETFs (easier to capitalize on a downward market for novice trader) and utilize leverage helps to encourage market participation by people in all income brackets. To take away these options would be a stride towards exclusivity based on economic status and further separate already diverging income classes and political parties.
I oppose restrictions being placed on my right to choose and invest in stocks/bonds/annuities/funds/ETFs/crypto with my own resources as I see fit.
I have been investing for nearly 30 years, carefully researching the products I trade without relying on any particular broker nor adviser. I have recently added cryptocurrency assets, including BITO Proshares. I view this as an additional branch to
As an investor we understand risks associated with investing in leveraged and inverse funds. Please do not restrict investors(esp retail) and make investing in stock market tougher. This regulations if brought in will impact investors/traders who are already in trading and they might incur huge loss in terms of capital depreciation by scaring away exiting and new investments.
To whom it concerns at the FINRA. I have heard that y'all are considering adding regulations to leverage and inverse funds. I strongly oppose additional regulations as I believe such regulations will burden investors and our saving goals. Regulators should not be in charge which public investments I would like to choose, they already regulate 14% of our salaries for social security.
I strongly disagree with the addition of any new oversight related to leveraged and particularly inverse etf's. I use them to hedge/protect my family's assets particularly in periods of heightened volatility, which is becoming increasingly frequent as the machines/algorithms have taken over trading (an area that regulators don't appear to be overly concerned with).
Please see comments.
Pass a regulator-imposed test of your specialized investment knowledge
-- This should be a few questions, not complex, just a couple basics.
Demonstrate a high net worth
-- Not high. $2,000 or something like that.
Get special approval from your broker
-- Not special approval, just the broker sees the $value, asks the questions, and then approves.
Attest to reading
I understand that regulations being considered by FINRA might impact my ability to invest in leveraged funds or place an unnecessary burden on being able to do so. I have been managing my portfolio for only a few years now and am on a fast learning curve. Investing in a triple leveraged index fund was not such a hard decision and I put less than 5% of my total wealth in it. I've made
Market manipulation has been there over decades. Traditional retailers is suffering more than anytime due to the leverage of capital that’s not based on equal ruling. On top, law enforcement agency has not been obligated with the assigned duty. When will an open and fair market/system be back?
Leveraged and inverse funds are important part of risk management. These funds make it possible to use a small percentage of capital to risk manage the other side of a trade. There are plenty of SEC / FINRA regulation as well as documentation on investments to understand the risk. Should investors ignore reading the documents of any and all investments that is the investors choice.
Please do not restrict investor access to complex and leveraged products. Yes, there ought to be disclosures of risks and transparency around fund mechanisms. In other words: informed consent. But barring access is undemocratic and wrong. Many leveraged funds are useful tools for investors who lack the requisite capital to use futures to achieve leverage.
