I believe that the complexity of Leveraged ETFs is correctly matched with the current required notice and acknowledgement. Further restrictions on these products are very likely to be unfair to everyday Americans. Retail investors can and should be able to choose the level of risk and volatility that matches their investment knowledge and interest without needing to be already experienced or
(a) When and How Transactions are Reported(1) Trade Reporting Facility Participants shall, as soon as practicable but no later than 10 seconds after execution, transmit to the FINRA/Nasdaq Trade Reporting Facility or if the FINRA/Nasdaq Trade Reporting Facility is unavailable due to system or transmission failure, by telephone to the FINRA/Nasdaq Trade Reporting Facility Operations Department,
Comments: Please do no limit access to leveraged funds. I use them extensively, and they are excellent trading products. For those that are not familiar with them, there are excellent precautions in place by brokerages, including the requirement to read and sign information about the risks, as well as a risk statement with every trade.
Regulators should not choose what investors or traders can put their money to work. I have traded in inverse and leveraged ETFs and that is my choice and my risk. These vehicles are an important part of a trader's tools. Do not screw this up by denying traders the ability to trade these vehicle.
I oppose any restrictions on my ability to trade any type of security including leveraged and inverse funds. I use leveraged and inverse funds to protect my portfolio especially during volatile times. Please do NOT restrict my ability to trade these financial instruments.
Comments: L & I funds are no more risky than playing Options. If anything you should be limiting individual investors availability in using leverage to play options, or options trading in general, which can hurt the market as well. Options trading is far more like gambling and less like investing than anything else, had gained popularity with the newer more uneducated investing crowd and
The Product Suitability section of the 2017 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.
(a) If an ADF Trading Center does not achieve certain thresholds of both its Projected Average Transaction Volume and its Certified Peak Transaction Volume in one or more categories on one or more days in a given calendar month, the following shortfall capacity usage fees will apply:
For Projected Average Transaction Volume:
Level
Percentage Shortfall
1 – 2 days
3 – 5 days
6 – 10
The FINRA Test Facility (NTF) will be unavailable all day Monday, May 15, 2023. NTF availability will resume on May 16, 2023.
Production systems are unaffected by this event.
Please contact FINRA Product Management or call (866) 899-2107 with questions regarding this notice.
