I would like to express my SUPPORT for additional regulation of trading leveraged and inverse funds. I use leveraged ETFs quite heavily in my own financial planning, and I don't see any reason not to require investors to pass a simple test to use these products. They are a great tool for hedging, but they can be very riskyand I believe some measures should be taken to make sure that they are used by people who can either demonstrate a basic understanding of those risks or who can demonstrate that they can afford to lose what they are investing.
I do NOT believe that wealth or income should be the sole qualification. While I now meet the wealth requirements myself, I recognize that I would not be where I am today without leveraged ETFs, and to support a restriction based solely on wealth or income would be tantamount to pulling the ladder up behind me, but as long as anyone can retain access to these tools through a reasonable and accessible testing requirement, I believe that would be a fair regulation.
Ryan Mendonca Comment On Regulatory Notice 22-08
I would like to express my SUPPORT for additional regulation of trading leveraged and inverse funds. I use leveraged ETFs quite heavily in my own financial planning, and I don't see any reason not to require investors to pass a simple test to use these products. They are a great tool for hedging, but they can be very riskyand I believe some measures should be taken to make sure that they are used by people who can either demonstrate a basic understanding of those risks or who can demonstrate that they can afford to lose what they are investing.
I do NOT believe that wealth or income should be the sole qualification. While I now meet the wealth requirements myself, I recognize that I would not be where I am today without leveraged ETFs, and to support a restriction based solely on wealth or income would be tantamount to pulling the ladder up behind me, but as long as anyone can retain access to these tools through a reasonable and accessible testing requirement, I believe that would be a fair regulation.