Subject: File No. S7-24-15
From: David M

March 6, 2020

Given the markets latest correction and increased volatility, leveraged-inverse funds have been VERY important to me. They have provided protection on the down side, while allowing me (for what I believe is a small cost) to do other things besides trade index futures and options all-day-every-trading-day. Using these ETFs, I am protected and do not have all my time absorbed in the process of doing so. A great service, to be sure, at a small price.

Having many years of experience trading options and futures, in the past, I am quite capable of emulating a leveraged-inverse fund. I have degrees in Math and Engineering and Business and have extensive experience in modelling quantitative situations. However, in markets such as these, I would have to do nothing else for most of the work week. To call this inconvenient would be an understatement. Work, chores and even recreation would be eliminated or at least curtailed.

In order to trade these ETFs, my brokerage required me to answer many questions regarding my relevant experience to qualify to trade these ETFs. That process is likely due to their sensitivity to liability. I also believe in treating adult citizens like they are adults. Limiting access to these funds with regulations underestimates my fellow citizens and possibly even me. What if I don't meet the standard because of a technicality on a rigid regulation? Documenting about 2/3 of my experience would be difficult to impossible. Most of my relevant experience is before 2005 and a significant portion is before the internet was widely available.

If the SEC would like to be of service, your time would be better spent on stress testing the counter partied to the swaps and contracts involved. I also assume some reliable party(s) verify (audit) the existence of the assets held in any ETF. If not, some agency, likely the SEC, should really get on that for all ETFs, not just these. Other than that, this proposed regulation just introduces inefficiencies into a market and treats adults like children. Please don't.