John Elliott Comment On Regulatory Notice 22-08
The idea of putting restrictions on Inverse/Leveraged securities is just a bad idea. 1) These instruments are not that complicated - people can understand them....Typically they are based on indexes (e.g., 2X SPX etc.), that's easier to understand than the inner-workings of any individual company! 2) FINRA, I believe, already requires brokers to display warnings - that's good enough. A warning that these instruments are different is what is needed and that makes good sense. Restricting trading on these by FINRA makes no sense.