February 20, 2020
I strongly oppose SEC proposed rule #S7-24-15. This proposal is a solution in search of a problem. Forcing investors to undergo an invasive qualification process to purchase leveraged and inverse ETFs would be incredibly time-consuming and would, in effect, force more investors into riskier margin accounts. Many investors use leveraged funds as a safer alternative to margin loans. Margin loans are even riskier than leveraged funds because with margin, it is possible to lose much more than your initial investment. Unless the SEC wants to push more investors to take out margin loans, the SEC should withdraw this proposed rule.