The decision on whether or not an inverse or leveraged product be available to an investor ought to rest solely with the investor. Any investor who would be willing to use such products is well aware of the risks and can make their own financial decisions. These are complicated products that the retail trader would not use. To be able to properly invest in financial markets requires extensive analysis and understanding of market cycles as well as understanding of central bank credit expansion and contraction. To invest in markets at all without this knowledge and awareness is extremely risky and so if any courses or qualifications should be put on a professional investor who knows how and is willing to use leveraged and inverse products, then by that standard the entire retail public should be required to understand how markets work. A retail trader that purchased meta stock in the recent past would have suffered significant loss, yet the general public has no restrictions on purchasing those shares. Why restrict more sophisticated investors from using the tools that help them mitigate risk through hedging.
Adam Milligan Comment On Regulatory Notice 22-08
The decision on whether or not an inverse or leveraged product be available to an investor ought to rest solely with the investor. Any investor who would be willing to use such products is well aware of the risks and can make their own financial decisions. These are complicated products that the retail trader would not use. To be able to properly invest in financial markets requires extensive analysis and understanding of market cycles as well as understanding of central bank credit expansion and contraction. To invest in markets at all without this knowledge and awareness is extremely risky and so if any courses or qualifications should be put on a professional investor who knows how and is willing to use leveraged and inverse products, then by that standard the entire retail public should be required to understand how markets work. A retail trader that purchased meta stock in the recent past would have suffered significant loss, yet the general public has no restrictions on purchasing those shares. Why restrict more sophisticated investors from using the tools that help them mitigate risk through hedging.