Oct. 16, 2020
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Comment on SEC Proposed Rule #S7-24-15: Dear SEC, I am writing in regards to proposed rule #S7-24-15, which would limit my access to leveraged and inverted instruments. Why?? There is a very good chance that the bull market is ending, that this is more than a correction, and - if so - what are we supposed to trade as it drops? Just bonds? (In a period of low interest, low inflation.. not too temping.) Yes, the average retail trader like me (whom you are supposedly protecting, yes?) understands what 2X and 3X leverage means.. our risk is increased, not only our potential gain. Buying individual stocks is still MUCH riskier, if you ask me, much more volatile if you compare average daily gains/losses (and, yes, retail traders like me DO monitor what we trade!) My brokerage already provides LOTS of warnings about potential dangers, and your proposed new rules would place an undue burden on them.. and I'm worried might cause them to drop these leveraged and inverted instruments altogether. If you REALLY care about keeping us safe, why don't you re-evaluate your (pardon me, but frankly STUPID) "pattern day trader" rules, which force us to hold onto losing positions for at least 24 hours. Do away with this useless and out-dated rule, and suddenly leveraged funds become MUCH less risky (and inverse ones a great hedge against current/coming conditions). Thank you for the opportunity to comment, and I sincerely hope you do the right thing for us - the traders of the market your oversee - and not any special interests currently lobbying you.