Allowing investors to purchase leveraged ETFs, in actuality, reduces their personal liability. The alternative is for higher interest and personally guaranteed margin loans. Additionally, margin loans lead to forced selling when prices fall - which can cause panics all by themselves.
James Mackle Comment On Regulatory Notice 22-08
Allowing investors to purchase leveraged ETFs, in actuality, reduces their personal liability. The alternative is for higher interest and personally guaranteed margin loans. Additionally, margin loans lead to forced selling when prices fall - which can cause panics all by themselves.