Finra hits customers with increased margins for leveraged ETFs

- Structured Products staff
- 03 Dec 2009

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New US Financial Industry Regulatory Authority (Finra) rules, which came into effect on December 1, have increased the margin maintenance requirements for investors who hold leveraged exchange-traded funds (ETFs). Margin requirements will now be “commensurate with the leverage of the ETF”, according to the regulatory notice.

Existing margin costs are 25% of market value for a long fund and 30% for a short fund. This figure will now be multiplied by the leverage of the underlying fund to

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