Leveraged ETFs currently provide some of the cheapest forms of leverage available to retail investors at a cost of less than 100 basis points above the daily fund rate. Furthermore, they provide inherent tax advantages in rebalancing when compared to alternative leverage methods such as opening box spreads, obtaining effective leverage through options chains, or managing futures contracts.
Not to
Exchange Act Rule 15c3-5 (Market Access Rule) requires broker-dealers with market access or that provide market access to their customers to “appropriately control the risks associated with market access so as not to jeopardize their own financial condition, that of other market participants, the integrity of trading on the securities markets, and the stability of the financial system.”
Comments: As a retired Registered Investment Advisor of 38 years without a single complaint, I highly recommend you NOT change investor's access or ability to trade complex products, including and especially leveraged and inverse ETFs. Retail investor's net purchases of such leveraged ETFs have been rising steadily over the past few years, with the 10-day rolling sum recently exceeding
The Anti-Money Laundering (AML) section of the 2019 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.
I am writing to ask that you do not put investment restrictions on individual investors with regards to leveraged funds and inverse funds. These funds are safer than taking out margin in my brokerage account to leverage up my positions. Inverse funds are great for portfolio management at times like this when the stock market is over valued and the federal reserve is raising interest rates. It is
This attempt at limiting my ability to invest and trade is outrageous. This is regulatory over reach that assumes we are unable to make our own informed decisions about our investment portfolios. Please consider that my family and I should be able to choose unfettered, which investments are best for us. We should not be burdened with a special and arbitrary process. Leveraged and inverse funds
It is common knowledge that markets are manipulated by large funds and privileged wealthy investors. Leveraged and inverse funds are the small investors way to level the playing field. People should have the right to make their own financial decisions. Information regarding risks is adequate to inform an investor who should take responsibility for their own actions. Passing a knowledge test does
Hi, I have following comments/concerns regarding the investment choices for individuals: I should be able to choose the public investments that are right for me and my family. Public investments should be available to all of the public, not just the privileged. I shouldn't have to go through any special process like passing a test before I can invest in public securities, like leveraged and
To whom it may concern, It's undemocratic to make certain investments available only to the already wealthy. Leveraged investments should remain available to everyone, regardless of their net worth. And the same rules should apply equally, to everyone, all the time. It's not possible for regulators to care as much about my investments as I do, despite their best intentions. And nobody
Dear SEC, I'm vehemently opposed to Rule #S7-24-15, as it limits the available securities to the public which are within their right to own. As a licensed investment advisor, we already provide the expertise to our clients to explain leveraged and inverse funds as investments. Specifically, these are not recommended for every client, but can be quite useful for clients as a hedge, and should
