Leveraged and inverse funds are important to my investment strategies. They are no different than other basic public stock investments. They further allow me to hedge the risks associated with individual stock purchases. I am fully capable of understanding leveraged and inverse funds and their risks. Once again it appears such rulings are meant to intrude on my ability to freely trade and invest
I oppose the legislation in the proposed rule #S7-24-15. I like the ability to invest in leveraged funds, specifically SQQQ. When the market indicators show that the markets, in this case the Nasdaq Composite, is going to go through a contraction, funds like SQQQ allow me to realize a greater return with less capital. Funds such as SQQQ help level the playing field for other investors that do not
Independent investors see that markets go up and markets go down and need to have the ability to invest in inverse funds without the cost of expensive advisors and with the same freedoms as large institutions. We do not need the nanny state protecting us from our own assessment of risk. This is a basic freedom versus big-state control issue. I am capable of understanding leveraged and inverse
SUGGESTED ROUTING*
Senior Management
Legal & Compliance
Operations
Trading
*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
The Securities and Exchange Commission (SEC) recently approved an amendment to Paragraph (b), Part VI,
The Direct Market Access Controls section of the 2019 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.
(a)(1) Unless otherwise permitted by FINRA, a member shall not enter into an agreement for the carrying, on an omnibus or fully disclosed basis, of any customer account in which securities transactions can be effected ("customer account" or "account"), unless such agreement is with a carrying firm that is a FINRA member. An introducing firm that acts as an intermediary for
In both 2017 and 2018, FINRA issued Reports on Examination Findings in response to firms’ requests that we make publicly available a summary of key findings from FINRA’s examinations of member firms. Firms use this information, as well as effective practices observed by FINRA at certain firms, to anticipate potential areas of concern and improve their procedures and controls. (We subsequently refer to the two prior years’ documents as the “2017 Report” and the “2018 Report.”)
FINRA Requests Comment on a New Academic TRACE Data Product
Transparency is essential to our “free” markets and recently implemented rules & regulations mean NOTHING without enforcement. I am sickened by the lack of accountability of our government officials and how naked short-selling and other egregious behaviors have continued for far too long by Hedge Fund institutions with ZERO considerations “paid” to retail investors.
Reporting needs to be more than monthly, weekly at latest. It also needs to be changed so that it 100% accurately identifies short interest and delineates between real and synthetic borrowed shares for short interest. Fines should also be such that they accumulate to a point that a rule breaker will not be able to just choose to keep paying the fine and committing the crime.
