April 17, 2020
I would like to express my concerns regarding legislation to change the requirements to trade leveraged products (etfs, etns, mutual funds etc).
The general trading public are capable of making their own mind up as to how these products fit within their own portfolio, and do NOT need a third-party deciding as who should be able to trade these products.
Leveraged products have been around for a very long time, and it makes no sense to change the requirements when it has worked for so long for the general trading public.
For example: ULPIX had a inception date of 11/26/1997.
I agree with full disclosure on these leverage products and investor signing off on a waiver to acknowledge that the investor understands and knows the risks of trading such products.
By restricting the individuals who are able to trade these products you create a substantial liquidity problems and the widening
spread between prices. This is dangerous to leveraged products, so it's not helping at all. Therefore it is HARMFUL to the general trading public.
With the current markets in free fall, Inverse Products are ESSENTIAL to investors. To hedge risks to their portfolios, and to make money when all other investment options are getting crushed. Again its HELPING investors to protect their portfolios.
These leveraged and inverse products very important to me and I have traded them for over 20 years, helping me to obtain enhanced returns and to protect my portfolio.
Again, I do NOT want any additional government imposed limitations, restrictions on my personal choices on what I may or may not be able to invest in these regarding leveraged or inverse products.