Comments: caveat emptor....
Banning retail investors from trading certain instruments is like like throwing an abuse victim in jail to protect them from their abuser. The only reason that this instrument performed so poorly over the last 2 years was the excess liquidity in the markets, and the pump and dump scams often indoctrinated into CNBC viewers. Over the year or so, we’ve witnessed the collapse of Melvin Capital,
As an individual investor who has invested in complex instruments for years, I am opposed to these regulatory controls. They are over-reach by the government on the assumption that people are stupid and should be ruled rather than have the freedoms. The barrier to these instruments will not only create obstacle for investment, it will dramatically increase the cost to access these instruments as
Comments:I am a long term investor that prefers to use leveraged products to lessen my exposure to individual stocks. The risks have been made very apparent by my broker.
Not all retail investors lose money.
The current regulations on "complex securities" is adequate. FINRA and SEC doesn't need any further new regulations in complex securities. These complex securities have the same risk and volatility as buying a individual stock. Geared ETF and Inverse are for advance investor and trader. The current agreement with brokers is adequate. I studied geared and crypto trust for hundreds
I as a Investor understand the risks involved in L&I funds before investing on them. So no need for restrictions on these funds. As 90% of stock market scrips are risky anyway, I do not see any problems with these direxion funds. Please do not make any limitation on these. Thanks.
I am a retail investor and have been trading various of these “complex” products for well over a decade (leveraged/inverse ETF’s and options). I find the premise of this Regulatory notice to be highly suspect – that retail investors are not sophisticated enough to be able to trade these PUBLIC instruments and should have sufficiently high impediments put in place to discourage or bar their use (
Comments:Direxion 3X/2X Leveraged funds when used judiciously and produce outstanding returns. For example purchasing them when they are significantly -80%-90% down. It is a better alternative than the options market.
