Dear Finra,
I became involved in managing my own portfolio as a college student. While I may not be a finance major, as an investor I have had a net benefit to have free access to a variety of financial instruments. Yes, some are "complex" such as inverse funds, but that does not mean that this area of investing needs regulation. It is up to individuals to exercise their best
I do not believe we need government regulators limiting our investment choices. I have used leveraged funds to help balance my portfolio for years and I should have the rights to continue to do so. I am well educated and more than capable of properly using these financial instruments as part of my overall investment strategy.
Please reconsider limiting who may invest in leveraged funds and inverse funds. We are quickly seeing only those who are already financially established being allowed to invest in securities that have potential for high upside. As such, the cards are being stacked against the average investor, even those who are willing to educate themselves and accept the risks.
Why is the government getting in my way to trade with my own money? Shouldnt the government simply be concerned with making sure that the public companies provide the most accurate and relevant financial data in a timely manner, instead of assuming that I am stupid and a bad steward of my own finances and feeling the need to create more regulations?
This is absurd. I am quite willing and capable of making my own financial decisions. Leveraged instruments are used many different ways in addition to speculating. Hedging, for one very important application. Those of us that are professional and/or serious traders NEED instruments like these. It LOWERS our risk, it dos not increase our risk.
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SUMMARY
In response to a request by the Association, the staff of the SEC's Division of Market Regulation has issued its views on frequently raised interpretive questions
TO: All NASD Members and Level 2 and Level 3 Subscribers
On Tuesday, April 19, 1988, the following 11 issues are scheduled to join the NASDAQ National Market System, bringing the total number of issues in NASDAQ/NMS to 2,994:
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BMEEF
I oppose the proposed new FINRA regulations that would restrict investment in leveraged and inverse funds. They are an important part of many investors portfolios, with good reason, as they can help maintain financial stability (as in recent months). Also the definition of complex products is so broad, arbitrary and vague that it could ensnare a vast number of commonly used public securities.
My family's long-term investment plan includes leveraged ETFs. Our financial decisions have been made under the assumption leveraged ETFs would be available in the future. The SEC has already approved these funds. We don't need FINRA to hold our hands. Please don't assume you're smarter than we are.
I believe everyone should have the same privilege to choose their investment. There shouldn't be a special test for the public investors to gain right to invest in such investment like leveraged and inverse funds. I believe in the US economy and long term leveraged bet on US economy is the only way to gain the financial freedom. Please don't take this away from me.
