Having used these products for a very long time, i would make the following observations:
* these instruments fix leverage as opposed to variable leverage provided on margin by brokerages. individual investors are smart enough to adjust their own leverage accordingly.
* the cost of borrowing implicit in leverage funds will often be better than the margin charged to individual investors by their
Over the years, I have used many of the "complex products" that are the subject of Regulatory Notice 22-08 including leveraged ETPs, inverse ETPs and options. In all cases, I did the appropriate research on these products to understand how they work and the risks associated with using them. These products have been an important part of my investment portfolio to either hedge
Dear FINRA Regulators, To whom it may concern. I would prefer that you stay out of my business. The less government we have the better, is my absolute opinion. What ever I want to invest in is my concern and my concern only, not yours . I oppose any further government involvement what so ever. Leveraged and inverse funds such as (SQQQ & FAZ) are an especially important part of my strategy
Use of Inverse and Leveraged ETFs are great for investors to use when the markets are not functioning properly, perfect for late 2021 and now 2022. ETFs are common, simple, even teenagers understand how to use them.
Planning for retirement in a bear market is difficult in the best of times. When we hit a bear market, or a crashing market at the age of 60+, with inflation over 8%, certainly we
As the financial industry continues to evolve, it's important to stay ahead of emerging risks and trends. On this episode of FINRA Unscripted, we sit down with the leaders of FINRA's new Strategic Intelligence and Analytics team to discuss how they are working to identify and analyze these industry developments.
Any test of specialized knowledge should be dependent on the specific investments being considered. The degree of investor awareness required to invest in a leveraged S&P 500 2X fund is suitable for many investors who are aware basically of the risks and have been informed of the proportion of net worth they could / should invest.
Brokers should be held legally liable for INITIATING
Comments: I am a licensed 6,7,63,65 FA, it has been 17 years since I passed my series 6 exam. I have a BS in Business and a MBA. I have almost 30 years of banking and finance experience. Leveraged ETFs are misunderstood and misevaluated by regulators and investors. If you examine the returns of leveraged ETFs that track major indices you will find that while they do not offer a superior "
FINRA, Most people, including myself, who have managed to save any money are fully capable of researching leveraged funds and deciding if investing in them suits our needs and risk levels. We should not have to go through any kind of special process or pass any kind of a test. These funds are mostly used to hedge against unexpected shocks to the market and must be entered into, or exited, in a
We are conducting a comprehensive self-evaluation and organizational improvement initiative called FINRA360. The objective of this effort, which CEO Robert Cook launched in early 2017, is to ensure that FINRA is operating as the most effective self-regulatory organization (SRO) it can be, working to protect investors and promote market integrity in a manner that supports strong and vibrant
For more than two centuries, the securities industry in the United States has been governed by private arrangements to regulate business conduct—membership organizations that set rules for their members, and then hold members accountable if they break the rules.The earliest such “self-regulatory organizations”—or SROs—date to the 1790s, when groups of traders in New York and Philadelphia agreed
