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.
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!!!!!!
Market is never perfectly efficient, but these leveraged and inverse funds actually help investors like us to better manage risks and balance out the irrationalities in the market. Restrictions like this only postpone risks at best and impose longer-term threat to the market.
After investing in the market over 30 years I understand the risk involved with different equities, mutual funds, leveraged ETF's, and ETN's. If I assume the risk, I should be able to make the choice not a regulator. Leveraged ETF's are critical to my investment strategy.
INFORMATIONAL
Imposition And Collection Of Monetary Sanctions
SUGGESTED ROUTING
KEY TOPICS
Legal & Compliance
Senior Management
Disciplinary Actions
The Suggested Routing function is meant to aid the reader of this document. Each NASD member firm should consider the appropriate distribution in the context of its own organizational structure.
Executive Summary
The purpose
The FINRA is overstepping its authority by not allowing the average/retail investor to make their own decisions and take their own risks. Investing is risk taking by nature and its not fair for the average investor to be forced into buying only one type of investment (i.e. Long).
I have reviewed the documents and understand the risks of investing in leveraged products. I assume the risk, its made clear and the functionality of the instrument is also clear. I do not believe restrictions should be imposed on these investments as it will allow others, who are not restricted, to have an upper hand.
Do not put restrictions on the purchase of crypto coins, funds etc. I know the risks and so does everyone else investing in them and I and they are willing to accept the risks and don't need government regulations to "save" us, or "help" us, or restrict or limit us.
We as average investors should have the right to choose what type of investment and at what risk level to invest, not be subject to government regulation. Governement can play a role however is to educate investors about risk of certain investment vehicle
I am opposed to the banning of inverse funds. It is the major way I have as a small investor to "bet against" certain moves in the market (like today's market) and avoid the greater risk of investing in futures which would require putting more money at risk
