Finra tightens margins requirements
WASHINGTON DC – The US Financial Industry Regulatory Authority (Finra) imposed tighter margin maintenance requirements on investors holding leveraged exchange-traded funds (ETFs) on December 2.
Margin requirements are now to be "commensurate with the leverage of the ETF", according to Finra's regulatory notice.
Incumbent margin costs were 25% of market value for a long ETF and 30% for a short ETF. This figure will now be multiplied by the leverage of the underlying fund to determine the new
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