I oppose limitations on leveraged an inverse products.
These products are an important part of my portfolio and are useful tools for securing my long-term financial security.
Furthermore, these don't represent an outsized risk compared to idiosyncratic risk associated with investing in (or short-sellijg) individual stocks -- yet they already carry an *abundantly clear* warning -- including both the "review" page to get more information about these ETPs as well as on the trade confirmation trade.
Finally - tests or other usage criteria are subjective, inherently discriminatory and damaging; restrictions such as these will negatively impact the liquidity of such products.
Investors are already warned when purchasing levered and inverse products and FINRA's plan to restrict such products undermines the principal that investors should be able to decide which from funds and products they want to buy rather than regulators.
Daniel Costa Comment On Regulatory Notice 22-08
I oppose limitations on leveraged an inverse products.
These products are an important part of my portfolio and are useful tools for securing my long-term financial security.
Furthermore, these don't represent an outsized risk compared to idiosyncratic risk associated with investing in (or short-sellijg) individual stocks -- yet they already carry an *abundantly clear* warning -- including both the "review" page to get more information about these ETPs as well as on the trade confirmation trade.
Finally - tests or other usage criteria are subjective, inherently discriminatory and damaging; restrictions such as these will negatively impact the liquidity of such products.
Investors are already warned when purchasing levered and inverse products and FINRA's plan to restrict such products undermines the principal that investors should be able to decide which from funds and products they want to buy rather than regulators.