I oppose restrictions on public investments to so-called "complex products" including leveraged and inverse funds. Preventing the general public from accessing these types of investments will subvert the ability of non-high-net-worth individuals from offsetting losses during periods of economic retraction as well as capitalizing during times of volatility with calculated risk-
Public investments should be exactly that- public. As a non-professional investor should not have to go through special processes to invest in public securities such as leveraged or inverse funds. The market is already stacked against the small investor since we cannot access the 'instant' trades where the professionals make so much of their profits. The proposed regulation
Dear FINRA Regulator,
I am retired and derive much of my income from investments. I prefer to make long term investments but have no desire to make complex individual futures trades myself to protect my long term investments during times of exceptional volatility. I do, however, like to utilize inverse funds and leveraged inverse funds to minimize my downside risk when market volatility gets
ProShares offer a choice to investors. Disclosure of risks associated with ProShare's ETFs are well documented. Communication is regularly provided and easily reviewed by the public at large. Introducing illiquidity to the marketplace does not benefit existing shareholders and rather hurt small investors like myself. I currently invest in leveraged funds to take advantage of short to
Regarding my right to invest in leveraged and inverse funds.........................I oppose any further restrictions and / or requirements regarding my right to invest in any products in which I choose to invest. I have invested in leveraged and inverse funds for over 20 years and I do not believe that these products need to be regulated any further. I understand the risks and I believe that
I won't speak to all "complex products" - but the vague, undefined and arbitrary definition should be more tightly drafted to not include or restrict retail customer access to investments as relatively simple as a 2x or 3x index-based fund. These types of investment can help pass along economies of scale with respect to borrowing and therefore increase access to the markets for
I - not regulators – should be able to choose the public
investments that are right for me and my family.
Public investments should be available to ALL of the
public, not just the privileged.
• I shouldn't have to go through any special process
like passing a test before I can invest in public securities,
like leveraged and inverse funds. I am quite capable of
Testimony of Chairman and CEO Richard G. Ketchum Before the Subcommittee on Oversight and Investigations Committee on Financial Services
Good morning, It is my understanding that there are proposed restrictions on individuals using leveraged and inverse ETFs investment instruments. My use of ETFs offer me diversity, liquidity and income. The ETFs invest in a large number of stock which spread risk. The active ones also trade millions of shares per day which offer the ability to sell shares quickly and because of their volume the
The decision on whether or not an inverse or leveraged product be available to an investor ought to rest solely with the investor. Any investor who would be willing to use such products is well aware of the risks and can make their own financial decisions. These are complicated products that the retail trader would not use. To be able to properly invest in financial markets requires extensive
