TO: All NASD Members and Municipal Securities Bank Dealers
ATTN: All Operations Personnel
The schedule of trade dates/settlement dates below reflects the observance by the financial community of Lincoln's Birthday, Monday, February 13, and Washington's Birthday, Monday, February 20. On Monday, February 13, the NASDAQ System and the exchange markets will be open for trading. However, it
It poses a severe threat towards market fairness. It's like preventing people from skiing because it's dangerous, but except the rich ones. Retail traders or investors should be able to freely choose whatever products that fit their trading strategies. Finance is NOT only for the rich or the privileged. We know what leveraged funds are. Also, the liquidity will be severely
Please leave it to individual investors to make investment decisions for themselves.
What I would suggest is the following: You may require that a prominent warning for LEVERAGED funds like SPXU, TMV, etc. be displayed that they their value decays with time and therefore they are suitable only for short term trades. The current common warning that they are suitable for EXPERIENCED day traders is
Leverage ETF is like a high growth stock. It makes no sense to require investment to pass a test to trade or even hold the leverage ETF.
Netflix (NFLX) is a good example of a high growth stock. It was one of the best performing stocks for over 2 decades, but in just 5 short months, it drops from $700.99 on 11/7/2021 to $199.87 today's closing (5/3/2022) or down over 70%.
Sirs,
It is not clear what regulations you plan that would limit leveraged/inverse EFT and similar inventments. However, I would like to strongly suggest that anyone with several years experience in stocks/options be allowed to trade them unless their account is in the "savings" category v.s. "investment" category. Restricting experienced individual investors
We don't need your help. anyone who trades should be responsible for their own actions. These ETFs are not complex, individuals just fail to take the few minutes to read the information that each ETF provider is required to provide. Retail investors don't need your protection because we are so stupid and unable to understand "complex" ETF's. Thanks for
Comments: Instead of restricting investments in leveraged or inverse products, a focus should be on education. Explanation of risks and scenarios will help investors decide what they want. Certain automation steps may be helpful. Example- Limiting the investment in complex products in accounts that trade a lot, and/or limiting the amount of complex products as a percentage of total portfolio.
GUIDANCE
Manning Obligations
Effective Date: January 2, 2006
SUGGESTED ROUTING
KEY TOPICS
Internal Audit
Legal & Compliance
Operations
Senior Management
Systems
Trading
IM-2110-2
Limit Orders
Manning Rule
Executive Summary
On August 4, 2005, the Securities and Exchange Commission (SEC) approved amendments to Interpretive Material (IM)-2110-2, Trading Ahead of Customer Limit
GUIDANCE
SUGGESTED ROUTING
KEY TOPICS
Legal & Compliance
Regulatory
Senior Management
Financial and Operational Principals (FINOPs)
SEC Rule 15c3-1 (Net Capital Rule)
SEC Rule 15c3-3 (Customer Protection Rule)
SEC Rule 17a-5 (Reports to Be Made by Certain Brokers and Dealers)
Executive Summary
NASD is issuing this Notice to
An investor for 40 years, and a retired CPA, I trade inverse and leveraged securities daily. They are a key part of my investment strategy. It's not government's job to prevent people from using well-designed and regulated products. However, each broker of such instruments must be required to explain, person to person live, the benefits and possible losses that can accrue to investors,
