Summary
In August 2019, FINRA launched a retrospective review that, among other things, sought stakeholders’ input on the effectiveness of Rule 3240 (Borrowing from or Lending to Customers).1 Based on feedback received during the review, FINRA is proposing amendments to Rule 3240 to:
emphasize that the rule generally prohibits registered persons from entering into borrowing or
SUGGESTED ROUTING*
Senior Management Corporate FinanceLegal & ComplianceOperationsTradingTraining
*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
Congress passed the Insider Trading and Securities Fraud Enforcement Act of 1988, which became effective on November 19, 1988, and augments enforcement of the securities laws, particularly
Leveraged funds and ETF's are important tools to allow investors to gain market leverage at a manageable level of risk, compared to traditional methods of leverage, such as the use of margin. Investors who research and learn the appropriate use of leveraged funds are able to use them as a part of an overall portfolio and generate leverage without jeopardizing their entire net worth. In
INFORMATIONAL
Fixed Income Transaction Reporting And Dissemination
Effective Date: 180 Days After Publication Of TRACE Technical Specifications
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KEY TOPICS
Corporate Finance
Legal & Compliance
Operations
Senior Management
Technology
TO: All NASD Members
The Securities and Exchange Commission has approved amendments to Article III, Section 28 of the Association's Rules of Fair Practice and the amendments are hereby declared effective as of May 1, 1983. These amendments were previously approved by the Association's Board of Governors and by a vote of the membership.
Section 28 addresses the responsibilities of
Hello,
I am an individual investor that uses inverse and leveraged ETFs for a hedge. They work good for me especially in these volatile markets. I was required to read and understand the risks before I could trade them. I recently bought some WEAT and CORN commodity ETFs, they trade like stocks and am interested in learning about currency ETFs. In the past traded some crypto trust funds
Limiting investors choice to determine the best investments based upon their goals is unwarranted and detrimental Investors who use unique investment strategies (ie options, crypto currencies, shorts, high yield bonds, leveraged ETFs) should not have to incur an additional regulatory burden. There are many complex investments and they have been utilized by investors for decades. The
Limiting the ability for all investors to choose the investments that they want us a large overstep by regulators. Rules such as these do not provide additional protection to investors but instead provide hurdles for individuals that they cannot meet and limits their access to potential enhanced returns.
Broker dealers already provide disclosures that clients have to agree to before their
1. I not regulators should be able to choose the public
investments that are right for you and your family.
Public investments should be available to all of the public,
not just the privileged.
2. I shouldn't have to go through any special process
like passing a test before you can invest in public securities,
like leveraged and inverse funds. Explain that you are
