John Hanley Comment On Regulatory Notice 22-08
If regulators are really concerned about helping retail investors manage their risk in the market they should make it easier to buy fractional shares and fractional options. Let's say a retail investor has 1 position in her account. She bought 100 shares of LABU @ $4.93. It rose to $5.93 today so she's gained $100. LABU is the 3x ETF for Biotech Bull. The best protection vs an LABU fall is LABD (Biotech Bear). She can only afford $10 right now in that effort. Allow her to buy 0.10 sh of LABD for $6.10. Now she has a see-saw portfolio. If LABU falls LABD will rise reducing her risk.