Response to the Financial Industry Regulatory Authority (FINRA) proposed rules on leveraged ETFs Leveraged ETFs may be volatile but it is not more volatile than many individual securities. In addition to uncertainties with individual stocks. Investors are able to allocate the use of leveraged ETFs to diverse their assets to fit their risk tolerance against the effects of a volatile and uncertain
FINRA (f/k/a National Association of Securities Dealers, Inc. ("NASD")) is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend NASD Rules 1021 and 1031 to permit members to maintain the registrations of those persons whose association with such members is for bona fide business purposes, provided that such
Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend the Code of Arbitration Procedure for Industry Disputes (“Code”) to align the Code with the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“Act”). The proposed rule change would also make a
Dear FINRA,
I am hereby writing to object to the rule enhancement articulated on Regulatory Notice 22-08, which proposes a restriction on investors' ability to trade complex products and options.
I clearly understand your concern about investors making uninformed investment decisions on options and complex products specifically to leveraged or inverse exchange-traded products. However,
SEC Approves Rules Limiting Submissions to Arbitrators in Closed Cases; Effective Date: November 24, 2008
Summary
With the recent increase in the number of customers seeking to open brokerage accounts and trade options, FINRA reminds members of the requirements for determining whether to approve a customer to trade options. Regardless of whether the account is self-directed or options are being recommended, members must perform due diligence on the customer and collect information about the customer
This ruling unfairly limits the ability to invest and profit or lose accordingly. Requiring education to the investor is reasonable but prohibiting access is rigging the game. It's understood that this environment carries heightened risk for these products. Putting a ruling like this in place now will restrict individuals access to these products in the future when risk is much lower,
SUGGESTED ROUTING
Senior Management
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To ensure that members fully comply with Securities and Exchange Commission (SEC) Rule 11Ac1-1 (Rule 11Ac1-1 or the firm quote rule), NASD Regulation, Inc.,
Summary
FINRA reminds member firms about requirements when using predispute arbitration agreements for customer accounts. Where member firms use mandatory arbitration clauses in their customer agreements, FINRA rules establish minimum disclosure requirements regarding the use of such clauses and prohibit predispute arbitration agreements from including conditions that, among other things, limit
