October 14, 2020
I'm concerned about SEC's new proposal that will require detailed personal/financial information in order to trade leveraged and inverse ETFs. This may make them less accessible to some investors, and could significantly reduce the trading volume. If that's the case, I may be forced to avoid them - low volume means higher volatility. Leveraged products already are intrinsically more volatile, so I don't think the SEC would want to make them EVEN MORE SO
Leveraged ETFs have been around for some 30 years. Why change them now? The trading has been orderly, even through turbulent times such as the entire post-Subprime bear market, and the recent Coronvirus scare. I don't see ANY justification for making them "more safe" to investors.
Please do not introduce such regulations. It would make a volatile product even more volatile, and this is 100% counterproductive.