FINRA Requests Comment on Proposed Consolidated FINRA Rule Governing Reporting Requirements; Comment Period Expired: January 16, 2009
On behalf of NASD, I would like to thank Chairman Sarbanes, Ranking Member Gramm, and the members of the Senate Banking Committee for this opportunity to testify.
I am a former series 7, 6, 63 from 1994 to 2001. Back then people knew risk, with all the information now the public is so much more well informed that regulation should be MINIMAL. Minimal meaning more of a mediator than a regulator.
There is nothing inherently dangerous about leveraged funds so long as the trader/investor is educated. There are hazards in many areas of trading - are we to ban trading Options as well ? Then ban trading the day before earnings announcements too ? Where does it end ?
All financial investments come with risks. Yes, some people will gamble their money away, but protecting people from themselves is not the appropriate role of this regulatory body. This is not an issue of protecting retail investors from fraud. The risks are well known and disclosed.
I am well aware of the risks with trading leveraged funds. This right should not be regulated! It is not any riskier than trading options or and other investments. The individual has a right to take the risks. DO NOT CENSOR OR TAKE AWAY MY RIGHTS TO CHOOSE!!!!!!
The risks with leveraged ETFs are very well accessible to the public. Investors have the right to take such decisions that result in a volatile portfolio. I may be a professional financial analyst, but leveraged ETFs should be available to anyone willing to learn and take the risks associated.
Everybody should have the right to invest in different currency,properties and stocks as well. People should be to choose public investments that are right for you and your family. It shouldn't be just the privileged that have a say. Everybody should have the right to do so.
Comments: i understand that leveraged products are for short term trading and have increased volatility. If used correctly within a portfolio they can actually reduce risk. Limiting access to these products would damage my ability to create a well doversified portfolio
I have used leverage index mutual funds and ETF's as part of my investing methodology for the past 15 years. I understand the downside as well as the upside potential. Making these funds unavailable or difficult to purchase would severely limit my investing success.
