Leveraged security and option instruments are important components of both my short and long term investment plans. Over-regulating these financial instruments could potentially cause great financial harm and substantially reduce future returns. Limiting investments to only individuals of high net worth seems to be against the Equal Protection Clause established by the 14th Amendment to the US
I am an investor in leveraged etf funds for the higher potential returns. I accept the risks and volatility associated with these funds. I make informed decisions and set limits on how much exposure I assume. The funds provide a vehicle for me to explore leverage investments that is managed by professionals. It is unlikely that I can do better on as a individual. I think that restricting or
Leverage ETF is like a high growth stock. It makes no sense to require investment to pass a test to trade or even hold the leverage ETF.
Netflix (NFLX) is a good example of a high growth stock. It was one of the best performing stocks for over 2 decades, but in just 5 short months, it drops from $700.99 on 11/7/2021 to $199.87 today's closing (5/3/2022) or down over 70%.
Please leave it to individual investors to make investment decisions for themselves.
What I would suggest is the following: You may require that a prominent warning for LEVERAGED funds like SPXU, TMV, etc. be displayed that they their value decays with time and therefore they are suitable only for short term trades. The current common warning that they are suitable for EXPERIENCED day traders is
FINRA Announces Updates of the Interpretations of Financial and Operational Rules
Comments: These L&I funds allow for simple day trading without the complexity of initiating margin and shorting procedures to obtain the same results. The platform on which I trade notes that these funds are not for long term investments and it details the risks. These funds are what allow me to easily outperform the market. Without them, I would need to waste an inordinate amount of time
I oppose restrictions to my right to invest in leveraged and inverse Exchange Traded Funds. There are already risk notification requirements for these investments. By their nature of being a fund, leveraged and inverse funds can be safer than using account margin or short selling. Leveraged and inverse vehicles allow me to participate in markets as I see fit. I do not want additional measures
Interpretations are marked in blue background beneath the rule text to which they relate.
Amc is being manipulated by ftds, dark pool trading, bond melting , being on the threshold lost from these illegal moves made by hedge funds (citadel). SSR has been issued multiple times to amc in the last month but continually the interest continues to rise and the short position continues to not be covered. Please look into this unbiased.
How do we get transparency and regulations involving synthetic shares or IOU’s. I understand the necessity to make trading instant, but these shares should be required to be covered in a day or two. Shorting shares infinitely that aren’t owned, borrowing borrowed shares, and synthetics are a major issue. We need transparency and legal consequences for fraud and manipulation.
