Taking away this right does not all a true free market. There are numerous ways to trade that are higher risk such as weekly options and micro stocks, what is the difference? This limits what should be a true and free market.
Comments: I stand to object this proposal because these are good leveraged investment product for normal people to access. Although it expose certain risk, the government shouldn't take away citizens' right to access those products.
Restricting access to leveraged investment vehicles is a mistake. People should have the right to choose how their hard earned money is invested. The public is capable of understanding risks and rewards associated with leveraged and inverse funds.
I use leveraged ETFs as part of my balanced portfolio. I understand and accept the risks, just as anyone investing in equities should. There is reason for regulators to interfere with my ability to shape my portfolio as I deem appropriate.
I taught myself how to invest by reading and learning from the experts. I don't need an agency telling what I should or shouldn't invest I'm smart enough to limit my risk when I'm investing.
Leveraged and inverse funds are important to my investment strategies. they help me protect (hedge) my investments and seek enhanced returns. Also I understand the risk and is only limited part of my overall portfolio.
Let me make the decisions about my finances. I am fully aware of the risks and fully capable of absorbing losses if they occur. I don't need regulators second guessing a situation only I can be aware of.
I have enough net worth, risk taking capability and knowledge to trade complex securities. Everyone should have the right to trade in a free market. Not sure who you think is stupid to not be able to trade.
I don't agree that there should be restrictions on leveraged and inverse funds. I believe that individuals who invest in these are savvy enough to understand the risks. Restricting access to these investment vehicles would actually discriminate and hurt individuals more than it would help. Thank you for your consideration.
TO: All NASD Members
The Association has been, receiving an increased number of inquiries regarding the application of Article III, Section 26 of the Rules of Fair Practice to certain compensation arrangements, and proposed arrangements, between principal underwriters and dealers in open-end management investment company shares (mutual funds) and unit investment trusts. These inquiries are
