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Leveraged ETF Margin Rules to Change

|Includes:EDZ, Direxion Daily Financial Bull 3x Shares ETF (FAS), FAZ, SKF, SRS

In what could be a major blow to ultra-long and utra-short ETFs, the Financial Industry Regulatory Authority announced Tuesday that it would be raising margin requirements for leveraged ETFs on Dec. 1.

 

In Regulatory Notice 09-53, FINRA notes that it will be implementing increased customer margin requirements for leveraged ETFs and uncovered options overlying leveraged ETFs.

 

Leveraged ETFs like the Direxion Daily Financial Bull 3X (NYSEARCA:FAS) and Direxion Daily Financial Bear (NYSEARCA:FAZ) have become increasingly…READ MORE

Stocks: FAS, FAZ, EDZ, SRS, SKF