I believe that the current proposals to invest in leveraged and inverse funds are wrong headed. First, these funds are an efficient way to use margin vs a traditional margin account. Second, it is my responsibility to make investment decisions not the regulators. Third these are great tools for hedging risk that are not available except by using margin and exposing myself to higher cost and fees associated with margin.
Harold Collins Comment On Regulatory Notice 22-08
I believe that the current proposals to invest in leveraged and inverse funds are wrong headed. First, these funds are an efficient way to use margin vs a traditional margin account. Second, it is my responsibility to make investment decisions not the regulators. Third these are great tools for hedging risk that are not available except by using margin and exposing myself to higher cost and fees associated with margin.