Jeffrey Seko Comment On Regulatory Notice 22-08
Equal access to the market should be given to individual investors and institutions. I know my risk, and if I lose I won't get a bailout like them.
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Equal access to the market should be given to individual investors and institutions. I know my risk, and if I lose I won't get a bailout like them.
Leveraged and inverse funds, like all nearly all investments, are risky. Adequate disclosure of risks should be sufficient for individual investor protection. If regulators do not believe that investors understand the risks from the prospectus, then what does this say about efforts to protect investors in domains beyond these funds? Moreover, what risks are unique to these funds that regulators believe are not well understood by investors despite disclosure (e.g., slippage, liquidation risk)?
Comments: Access to leveraged and inverse ETFs should not be limited. People investing in those ETFs are aware of the risk prior to investing.
I used to trade futures a few years back, I stopped because much of the movement went to overnight sessions. The leveraged and inverse funds put the regular traders on better footing to deal with the High Frequency traders. If you would like to regulate someone, I would suggest the hedge funds.
We need to let people invest in whatever they are confident, is part of been a free country.
I'm adamantly opposed to the intrusive and burdensome proposed regulation per FINRA Notice #22-08 of my straight-forward investment strategies which includes the regular, but always limited use, of leveraged and inverse funds.
It is absolute nonsense that FINRA would even think about sticking its unwanted nose further into such an important but limited investment activity that is very much an important element of my investment activity.
You have no business intruding on investors in this outrageous fashion!
Comments: As an investor with knowledge of the risks associated with L&I ETFs, I don't think our choices should be limited due to the lack of education of the few.
In this volatile market, we need all the choices available to us to succeed.
My brokerage firm already has education and warnings on these products.
Comments: I am an aggressive investor and often use leveraged ETFs in times of market drawdowns.
I am an individual investor for more than 30 years. Inverse leveraged ETFs have played a major part in my success! I am conveniently able to hedge my portfolio from downturns. Without inverse ETFs I would have to take on unlimited risk by shorting.
I strongly discourage any effort to eliminate this valuable portfolio management tool!
Comments: As a tool, in the hands of a competent advisor, a point which cannot be stressed enough, inverse funds can be a value component to the management the risk in a portfolio. For taxable accounts, an inverse can also assist with the management of taxes. For IRAs, where shorting an index is not permitted, an inverse can provide for a closely approximated approach.