Comments: -I do not think FINRA should propose limits that may restrict our access to L&I Funds or to disqualify us from trading L&I Funds or other "complex products". Regarding myself, I am an individual investor. I have good understanding of whole economy, market and fundamentals of equities and ETFs. I have MBA degree from Carnegie Mellon University business school. I
March 2022 Options Disclosure Document
FINRA is advising member firms that the Options Clearing Corporation has issued the June 2024 Options Disclosure Document (ODD). The ODD contains general disclosures on the characteristics and risks of trading standardized options. The June 2024 ODD contains new language to update (i) the list of options markets to include MEMX, LLC and (ii) settlement information to reflect T+1
"However, important regulatory concerns arise when investors trade complex products without understanding their unique characteristics and risks." Like the complex derivatives that the large financial institutions created leading up to the Global Financial Crisis and collapse of the housing bubble? Until you remove the ability of institutional investors to be excessively leveraged with
FINRA is advising member firms that the Options Clearing Corporation has issued the March 2023 Options Disclosure Document (ODD). The ODD contains general disclosures on the characteristics and risks of trading standardized options. The March 2023 ODD contains new language to (i) accommodate cash-settled flexibly structured options on certain fund shares that meet specified criteria as defined in
Funds tracking non-traditional indexes can provide investors with an expanded set of investment opportunities beyond those offered by traditional indexes. But they can also create additional complexities and risks to consider.
April 2014 Supplement to the Security Futures Risk Disclosure Statement
Summary
Recently, FINRA took enforcement action against several firms for failing to establish or maintain a reasonably designed supervisory system for recommendations of alternative mutual funds, also sometimes referred to as “alt funds” or “liquid alts” (“Alt Funds”). FINRA is continuing to note such deficiencies in its examinations and communications reviews of such products.
This Notice
Im writing to provide strong rebuke of FINRAs Regulatory Notice 22-08 and its attempt to limit investors/traders (I/Ts). What FINRA is proposing is tantamount to treating I/Ts like immature children. Its highly evident in the statement FINRA released: However, important regulatory concerns arise when investors trade complex products without understanding their unique characteristics and risks.
SUGGESTED ROUTING
Senior ManagementGovernment SecuritiesLegal & Compliance
Executive Summary
As part of its comprehensive program to monitor and enhance member sales practices, the NASD is publishing this Notice to remind members of their obligations under the Rules of Fair Practice when recommending CMOs to their customers. In light of the complexity and the varying risk
