I oppose proposed restrictions to inverse and leveraged ETFS. The reason for my opposition is that they are useful tools for hedging and as well for magnified short term gains. If there is a particular sector, underlying commodity, or index that I want exposure to, these products help me meet my objectives and help me formulate strategies to meet the objectives i have laid out for myself. I
I use funds like FAZ, SDS, and SQQQ as portfolio insurance to mitigate the wild market gyrations we have witnessed in 2008/2009, 2020, and even right now(?). Using funds like these I can achieve strong upsides in a down market while my losses are limited to what I have invested. Instead, regulate the program selling, the short selling, the futures market where I could lose far more than my
Hello, I have been investing in leveraged inverse funds for as long as they have been around. I fully understand the risks and use them only as very short term hedges. They have been a very important tool in enabling me to dampen volatility of my returns over the years, and as a result I have achieved a very respectable Sharpe ratio.
Please do not make me jump through hoops to use them.
Thanks
Comments: As a Financial advisor and investor of 32+ years, I strongly believe having the ability to purchase 1x inverse ETF's is a valuable short term hedging tool. I am not a fan of the leveraged ETF's as they can create a lot of damage if used improperly. Also the tracking error over time is very problematic. With that said, knowledgeable investors should have access to
I find the fact that regulators have decided to not only limit my (and most peoples) access to the funds that we wish to invest our savings in, but the fact that regulators believe that THEY can limit when and how we do trade, much like the Robinhood fiasco. I oppose this useless regulation when time and government effort could be better spent regulating the markets, brokers, and the corporations
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Preventing average retail investors like myself from leverge and inverse equities causes both great harm and disadvantage. Prevent the smaller players in the market from maximizing profits and hedging to balance out losses. Doing so would force greater risk trades by leaving investors such as myself with dangerous decisions such as shorting equities which can easily cause greater losses than
The staff granted an exemption from FINRA Rule 5130 with respect to purchases of “new issues” by the Canada Pension Plan Investment Board.
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NASD members are advised that on January 13, 1989, the Securities and Exchange Commission (SEC) approved an
FINRA recently proposed amendments to streamline and reduce unnecessary burdens regarding existing requirements addressing outside activities of broker-dealers’ associated persons. Unfortunately, several recent statements published in news media mischaracterize FINRA’s proposal in a number of ways.
