Regarding your published intent to consider regulating investments in leveraged investments. I oppose any all actions you may consider that would restrict my ability to choose which financial products I may choose as investment tools.
Individual Investors should have access to all financial instruments available to institutional investors. The high risk of inverse funds is made clear enough in the research. Individual investors in self-managed accounts would be at an even greater disadvantage without this.
As of April 23, 1993, the following 53 issues joined the Nasdaq National Market,® bringing the total number of issues to 3,065:
SUGGESTED ROUTING
Internal AuditOperationsSystemsTrading
Symbol
Company
Entry Date
SOES Execution Level
JARS
Alltrista Corporation
3/24/93
1000
CHCS
Chico's FAS, Inc.
3/24/93
1000
FFBG
First Federal Savings Bank of Brunswick Georgia
People take on risk whenever they put money into financial instruments. It is the buyers responsibility to be aware of the risks, even for leveraged and inverse instruments. The risk of these instruments is not so much greater than ordinary instruments that special regulatory framework is needed.
I understand the financial risk that I am taking when I purchase leveraged and inverse funds. They are important aspects of my investing strategy. Please do not restrict these assets from the marketplace. Every ETF has a place in the market. Thank you.
Please do not restrict access to geared financial products. They are a beneficial part of an overall portfolio strategy. When accounting for time horizon, percentage of portfolio, hedging, and proper asset allocation geared products fit an important need of investors.
I strongly object to this idea. It basically deprived the freedom of retail investors to choose their own favorite financial instruments to trade. If the regulators are so concerned about it, why not publish more education resources to remind the investors about those risks?
From the change in otc pink sheets to now removing access to leveraged products is an insult to the retail investing population. The complete mismanagement of the financial markets is on you and the lack of willingness to hold anyone accountable other than retail is unbelievable.
I don't believe open and publicly available stocks, ETFS (including leveraged and inverse products), or other financial instruments should require FINRA to regulate the purchaser of said instruments. The role of FINRA should be to regulating the issuer of the instruments themselves.
The job of government is not to take away voters' rights to make their own financial decisions. Regulations like this always have unintended consequences. Let people win or lose based on their own risk and reward philosophies and willingness to do the homework.
