Dear FINRA Regulators, To whom it may concern. I would prefer that you stay out of my business. The less government we have the better, is my absolute opinion. What ever I want to invest in is my concern and my concern only, not yours . I oppose any further government involvement what so ever. Leveraged and inverse funds such as (SQQQ & FAZ) are an especially important part of my strategy
Gentlemen, I am puzzled! Wall Street already has a clear advantage over the retail investor on multiple fronts including and not limited to, research, software, the speed of execution, inside information and in politics. Let us not forget the Robinhood fiasco the past year which was just one example of how markets are manipulated and front-run against the individual investor. Knowing these facts
These are products that are used by sophisticated investors who understand the risks and are willing to take them as part of their overall strategy for their reward.
Restricting access or imposing onerous criteria to meet before an investor can trade/invest in them goes against every principle of a free-market economy.
The entire premise of this regulatory notice is false, and data mining is used
regarding the potential further restriction of leveraged ETFs : an investor does not him/herself borrow money to invest in a leveraged ETF, they simply buy it as they would any other security like a stock or bond. I personally invest in leveraged ETFs that track broad indices such as the S&P 500. Although these will be volatile, as they are levered, it is HIGHLY unlikely that they'd
For some of us who are young and do not have the financial means to invest meaningfully in the stock market, it is imperative to have access to leverage to smooth out the amount of investable assets throughout our lifetime. If, for example, a recession were to occur shortly before my retirement, when my earnings potential is highest and I likely have the most amount of money invested, I would be
I Oppose Restrictions To My Right to Invest in Complex Products, including Leveraged and Inverse funds! Any attempt to impose restrictions on the individuals right to buy these trading instruments gives the large trading firms an unfair advantage and makes the market unfair to us. Large firms have resources to use trading programs and other trading tools which individual investors do not have.
Taking away investor rights to risk management assets like leveraged and inverse funds is robbing investors of income and simple tools which can only be emulated with complex options transactions if at all. Such regulation Hurts Investors: It could potentially deny us the freedom to choose investments that could help us achieve long-term financial security. Is Arbitrary and Unworkable: FINRAs
(a) Position Limits
Except with the prior written approval of FINRA pursuant to the Rule 9600 Series for good cause shown, no member shall effect for any account in which such member has an interest, or for the account of any partner, officer, director or employee thereof, or for the account of any customer, a purchase or sale transaction in an index warrant listed on a national securities
Bringing somebody new into the broker dealer industry is an expensive endeavor. Much of the industry works on a share of revenue generated through a registered representative's activities. Unless a new associate comes from an ecosystem of friends and family that would be willing to invest with the new associate the prospects for generating sufficient revenue to reward the firm and the
Alternative, "alt" or “liquid alt” funds are publicly offered, SEC-registered funds that use investments or strategies that can differ from what is offered in a typical fund. Compared to more traditional mutual funds and exchange-traded funds (ETFs), liquid alt funds tend to hold investments that extend beyond equities and bonds or employ more complex or sophisticated strategies.
