I'm astounded that you would attempt to limit access to leveraged funds on on regulated securities through registered brokers on public regulated exchanges, while doing nothing to restrict trading of unregulated, crypto currency in speculative ponzy schemes, that are wildly volatile, and subject to blatant market manipulation with pump-and-dump as a regular practice. This is the
Platforms like Fidelity, Vanguard, TD Ameritrade, etc. put checks before investors are able to invest in these ETFs/Funds. I believe these are sufficient safeguards. FINRA should not take away the ability to trade in these instruments and limit the ability for knowledgeable investors to benefit from the fluctuations in the market, while investment banks are able to make millions off them.
To whom it may concern,
I decide how I want to invest my money. I do not want a bureaucrat deciding for me. I've been a stock investor for 50 years and I trade the inverse and leveraged ETF's as a hedge on my portfolio. I understand how the are priced. I really do not need FINRA telling me to take some kind of test.
FINRA is right to have concerns about leveraged and inverse ETFs for retail investors trading on their own without a broker or advisor. Simple attestation and acknowledgement of risks with education is the answer. Investors are constantly told investing has risks and the primary focus should be on education of those risks without detrimental affects on broker dealers, brokers or advisors.
This is a huge mistake. Retail investors are much more sophisticated than you are giving them credit for. WE DO NOT NEED MORE BABYSITTING AND HANDHOLDING. We have the right to take the risk and invest in products that we so choose. Let us trade and invest in these complex products. The proposed rule changes are insulting, unamerican, and disgraceful.
Comments:leveraged ETFs are investments through legitimate brokers and are described in exquisite detail in their literature. Warnings pop up whenever trying to execute a trade. That should be enough for any investor to be informed completely. Any more is an example of government getting into what should be my private affaires. Please leave the leveraged products alone. Thank You
If you forbid these funds now you will lock in loses for investors who bought these funds in good faith. I am surprised that Drexion and Profunds aren't paying you to do it. They will be the only beneficiaries. Regulate corporate buybacks and give out fines for insider trading that are more then the money made if you want people to think you are doing anything
Leveraged ETFs and options can help us (individual) to reduce investment risks in many cases.
If limited or forbidden individual investors to use that, will let us bear more risks than companies. It is not fair to individual investors. Limited trading leveraged ETFs and options will make individual investors in a weaker position and loss tools to protect ourself.
I am 72 and retired Wall Street for over 35 yrs. No one but me should determine what is suitable for me.
Your rules lose people money. Your 3 day trades in 5 days in these volatile markets guarantees losses except for the most nimble.
Please go on a long vacation allow brokerage firms to know their customers!
The Communications with the Public topic of the 2025 FINRA Annual Regulatory Oversight Report (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations, (2) findings and effective practices, and (3) additional resources.
