Jagannadha Beahra Comment On Regulatory Notice 22-08
I definitely oppose the restrictions to my right to invest within security exchange commission limits.
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I definitely oppose the restrictions to my right to invest within security exchange commission limits.
I am capable of understanding leveraged and inverse funds
and their risks. I do not need these measures imposed on me!
I have used leveraged and inverse ETFs regularly and profitably during the market correction of the last 6 months. If not for the profit that I have made by using these ETFs as a very effective hedging tool, the value of my stock portfolio would have plummeted by more than 30%. But with the use of these leveraged and/or inverse ETSs as hedges, the overall value of my portfolio has gone up, not down in the last 6 months. The government has already taken away more than enough of my privacies and freedoms.
Public investments should be available to all of the public, not just the privileged.
Do not limit my ability to invest in leveraged funds. They are an important tool I use to manage my investment risk.
Direxion put out a request for investors in their products to comment on this proposed action. I figure it would be better to avoid going through their portal. The consensus seems to be that the proposed action, in its details, would ban most investors from purchasing inverse and leveraged funds. These comments apply to exchange traded inverse and leveraged funds, and not similar products that may be illiquid or have redemption restrictions.
While I am not against some basic check of investor knowledge of leveraged funds (similar to what is commonly required to use options), access to these funds should not be restricted for retail investors.
There are several reasonable use cases for leveraged funds, and retail investors should have ready access to them, just as professional money managers are able to employ leveraged systems.
I oppose any further government regulation on our abiltiy to invest. More red tape and regulations mean higher costs and lower potential returns.
Restricting investors ability to invest as they seem fit is NOT a proper way to do business. Leave things as they are.