Leveraged and inverse funds are highly valued-liquid trading instruments that I find very useful for quickly getting long and or short the market and are frequently used for hedging purposes. These products provide a very effective means to manage capital at market risk and there are no other inexpensive-scalable alternatives available to retail investors. These leveraged products provide
I think retail is extremely desirous of seeing more frequent reporting and as much of that made publicly available as possible. At least of a weekly or bi-weekly basis. I believe the currently attempted short squeeze is bring to light that lack of transparency is being used to commit fraud and establish predatory roles against companies. The watering of stock has been an issue for nearly a
SEC Approves Amendments to Eliminate the Requirement for the Senior Registered and Compliance Registered Options Principals (SROP and CROP)
Dear Regulators, (FINRA)
I understand my investments and the risk involved in my trads. I should not have to go through any special process before investing in public securities. The fund I am in allows trades for up markets and down markets which allows me to make up my loss if any by shorting different funds. Like today's market, I have been able to make money for my IRA instead of
SUGGESTED ROUTING
Senior Management
Institutional
Legal & Compliance
Options
Trading
Executive Summary
Through this Notice, NASD Regulation, Inc. (NASD RegulationSM) is establishing an interpretation that National Association of Securities Dealers, Inc. (NASD®) Rule 2860(b)(3) options position limits apply with respect to options transactions that are intermediated
It does not make sense to limit leveraged investments as long as I can get a mortgage for 20% or less down payment in an asset which can lose 50% in the matter of months during a recession. How can that be safer than using leveraged and inverse investments? I'll tell you that it's not, in fact is significantly less safer. What harm is it to limit inverse investments when
Frankly, I find this federal overreach. This regulation would be taking away my ability to hedge long positions in my portfolio with leveraged short positions, thus allowing me to reduce execution costs, margin costs etc. Frankly it also props up the buy side dealers in their offering of more expensive hedging products. These types of ETF's are a simple way to hedge and do not need any
This smells like a rat to me. I have seen leveraged ETFS taken away prior to large moves like the Natural Gas ETF UGAZ and USLV right before silver went up. It seems everyone is fine when a vehicle is a one way street to wall street pockets shorting them but as soon as the regular guy has a chance it is taken away. The risks to these are clearly spelled out and no action is required or warranted
I use leveraged funds to hedge my accounts in volatile markets. They are a particularly efficient and inexpensive way to do that in a short-term way. Regulations make short-selling as a hedge very difficult and cumbersome; the ability to access leveraged ETFs levels the playing field for retail investors who do not use brokers. I understand the risks and decay of the instruments, but those are
It is easy to understand that, in the long run, markets go up and that, therefore, an inverse fund that shorts an index is not a profitable long-term investment.
But it is also obvious it can be used to hedge long investments and limit the impact of a catastrophic downturn. And since it is related to an index, it is much less volatile and risky than many individual stocks.
Therefore, I don&#
