David Wittrock Comment On Regulatory Notice 22-08
It is my right to invest as I see fit, marshaling any expert help I may need. I strongly oppose the proposed restrictions in FINRA.
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It is my right to invest as I see fit, marshaling any expert help I may need. I strongly oppose the proposed restrictions in FINRA.
The government has no reasonable grounds to take this action to decrease the tools available to the average investor for the purposes of 'protecting them' from being able to make their own choices. Inverse and leveraged etfs are specialized and risky tools that nonetheless can be used productively by a skilled retail trader, and more to the point, it should be an individual's choice.
Leveraged and inverse funds are important to my investment strategies. I shouldn't have to go through any special process like passing a test before I can invest in public securities like leveraged and inverse funds. I am capable of understanding leveraged and inverse funds and their risks. I do not need these restrictions on my right to invest.
Equal access to the market should be given to individual investors and institutions. I know my risk, and if I lose I won't get a bailout like them.
Leveraged and inverse funds, like all nearly all investments, are risky. Adequate disclosure of risks should be sufficient for individual investor protection. If regulators do not believe that investors understand the risks from the prospectus, then what does this say about efforts to protect investors in domains beyond these funds? Moreover, what risks are unique to these funds that regulators believe are not well understood by investors despite disclosure (e.g., slippage, liquidation risk)?
Comments: Access to leveraged and inverse ETFs should not be limited. People investing in those ETFs are aware of the risk prior to investing.
I used to trade futures a few years back, I stopped because much of the movement went to overnight sessions. The leveraged and inverse funds put the regular traders on better footing to deal with the High Frequency traders. If you would like to regulate someone, I would suggest the hedge funds.
We need to let people invest in whatever they are confident, is part of been a free country.
I'm adamantly opposed to the intrusive and burdensome proposed regulation per FINRA Notice #22-08 of my straight-forward investment strategies which includes the regular, but always limited use, of leveraged and inverse funds.
It is absolute nonsense that FINRA would even think about sticking its unwanted nose further into such an important but limited investment activity that is very much an important element of my investment activity.
You have no business intruding on investors in this outrageous fashion!
Comments: As an investor with knowledge of the risks associated with L&I ETFs, I don't think our choices should be limited due to the lack of education of the few.
In this volatile market, we need all the choices available to us to succeed.
My brokerage firm already has education and warnings on these products.