Finra hits customers with increased margins for leveraged ETFs

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

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