Ladies and gentlemen, I urge you to not amend the rules regarding complex investment products like leveraged and inverse ETFs. I am an individual retail investor for whom these products are a necessary tool to manage risk in my portfolio. Many investors use them to hedge.
There exists many safeguards to prevent rampant speculation, and the rules in place as well as the efforts of retail broker
The choice of which investment products to buy is my choice, and should not be the choice of regulators.
I completely understand the risks these products carry. I do not need new regulations or tests imposed on me that limit my ability to purchase public leveraged securities.
I use leveraged securities to generate income weekly with a variety of strategies, and regulatory limits on my investment
I appreciate the need to protect retail investors from making decisions when they do not fully understand the risks or other features of the products. It is reasonable to require the broker to take steps to educate retail investors and conduct some sort of test to make sure that they understand what they are getting into. But insurmountable obstacles should not be thrown in the path of retail
I oppose any new regulations on leverged or inverse investment instruments. I have been investing in leveraged funds for 8+ years and fully understand their place in my portfolio. These should be open to any investor and not just privileged. There should be no special process or test required or review of my qualifications to allow their use. I am fully capable of understanding the risks and do
I disagree with further retail investor limitations. There are countless resources available for retail investors to utilize in order to learn about leveraged ETFs and other complex investments. Additionally, these investments pose no greater financial risk than any other individual stock investment, which, if the last 2 years have shown us anything, can be even more volatile than cryptocurrency/
I oppose restrictions on my right to invest in public investments. I currently own and invest in leveraged products. I should be able to choose the public investments that FIT me and my family. I am capable of understanding leveraged and inverse investments and their risks. I do not need tests/special processes imposed on me. Leveraged and inverse funds are an important piece of my investment
Comments: I strongly oppose any restrictions to leverage products besides perhaps ensuring that the etf providers be transparent in their methodology and that the product does deliver what it promises to do, e.g. Triple return of Nasdaq 100 in the case of Proshare Tqqq. Given that it meets these basic requirements, it should be obvious that self directed investors, like myself, can easily
To FINRA regulators, I've heard that you are considering to potentially deny me the freedom to choose investments that could help me protect my investments no matter what the market conditions are. The ability to purchase hedges allows me to keep my long-term investments intact and if you decide that I don't have the knowledge or skill to use them then perhaps you'd like to tell me
The Trusted Contact Persons topic of the 2024 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 and related considerations, (2) findings and effective practices, and (3) additional resources.
Please do not be condescending or ignorant about unnecessary regulations. Leveraged etf's are a safe and effective way to hedge wealth and/or create investment profits. Leveraged and inverse funds are essential to manage down markets and as a mature investor I do not need Finra guidance on what to do with my money. In my view this maybe a play to limit downside momentum in the stock market
