New Financial Industry Regulatory Authority (Finra) rules come into effect today, putting increased margin maintenance requirements in place for investors who hold leveraged exchange-traded funds (ETFs). Margin requirements are now to be "commensurate with the leverage of the ETF", according to Finra's regulatory notice.
Existing margin costs are 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
The week on Risk.net, March 10-16 2018Receive this by email