Dear Regulators,
As an individual investor fully exposed to the business cycle through full-time employment, it is essential for me to manage my overall risk exposure via investments.
Plain-vanilla long-only equity and fixed-income ETFs and mutual funds have a high correlation to economic outcomes and labor markets; for example, nearly all of them crashed during the March 2020 bear market, at
Complex products (ex: leveraged ETFs) are already limited in several wise ways. Limiting the leverage available to 3x is a good policy. However, completely gatekeeping who can access these products would simply increase inequality and unnecessarily increase costs for consumers. Gatekeeping access to all these complex opportunities would be akin to providing the unearned rent seeking through
TO: All NASD Members and Other Interested Persons
Following is a list of NASD Notices to Members issued during the first quarter of 1985. Requests for copies of any notice should be accompanied by a self-addressed mailing label and should be directed to: NASD Administrative Services, 1735 K Street, N.W., Washington, D. C. 20006.
Notice Number
Date
Topic
85-1
January 8, 1985
Martin Luther
Hello, I was saddened to hear the news of regulations that are being considered. I understand where for the concern about protecting individual investors by restricting these assets from being sold. However, I would like to bring up two things that I think are overlooked - 1. The internet 2. Technology The internet now allows investors to easily gather information about these products and become
Dear SEC I am appalled by your recent proposal to restrict investment in leveraged and inverse ETFs to investors with a high net worth. Particularly inverse ETFs are one the few convenient ways that smaller investors presently have to hedge their risk against a bear market. By restricting these funds to the very wealthy, your rule's primary outcome will be that high net worth investors can
An inverse ETF or even a leveraged ETF takes far less knowledge and understanding to invest in safely than a whole host of other publicly traded securities for which no similar requirements are being imposed. All one has to understand is that the security is designed to and reasonably likely to trade in the manner it is advertised by its promotors .... which is usually tracking an index or the
While I understand the SEC's concern to protect potential investors, straightforward access to leveraged and inverse funds are an important part of many, including my own, investment strategies. I have an extensive long portfolio and I use leveraged and inverse ETFs to hedge my long positions. This has been especially helpful to my bottom line in these recent volatile market sessions.
FINRA’s Research and Development (R&D) program is an innovation engine for FINRA - a sandbox for staff to take risks, explore new and disruptive technologies, assess potential usefulness to FINRA use cases, as well as investigate and test solutions to known problems.
Hi, I am an adult and I can take my own risk. I don't borrow money to invest and I response to my investment risk. Thank you.
Thank you, John for that kind introduction. It's an honor to speak at this great university – and the McDonough School in particular. Georgetown University is an incredibly valuable resource – to its students and the entire business and financial community.
