I'm very disappointed to hear that regulators may restrict our ability to trade publicly traded inverse funds. I use these funds regularly to hedge a small part of my total portfolio to add protection in a declining market. I am aware of the risks of doing this, just as I am aware of the risks of investing in an publicly traded security. Restricting the purchase of these leverage funds would likely mean I would have to learn and understand using options to hedge my risk. This appears to be a much more complicated process. I hope you will reconsider the implementation of this very restrictive requirement.
Mark Garrett Comment On Regulatory Notice 22-08
I'm very disappointed to hear that regulators may restrict our ability to trade publicly traded inverse funds. I use these funds regularly to hedge a small part of my total portfolio to add protection in a declining market. I am aware of the risks of doing this, just as I am aware of the risks of investing in an publicly traded security. Restricting the purchase of these leverage funds would likely mean I would have to learn and understand using options to hedge my risk. This appears to be a much more complicated process. I hope you will reconsider the implementation of this very restrictive requirement.