Finra imposes increased customer margin requirements for leveraged ETFs

The new requirements, which will be effective from December 1 this year, will increase the maintenance margin requirements by a factor proportionate to the leverage of the fund, without exceeded 100% of its value. The self-regulatory body says that the current margin requirement for any long ETF is 25% of the market value, while this figure is generally 30% of the market value of a short ETF. As a result of the change, a double-leveraged long ETF will require a maintenance margin of double the 25% requirement for a long ETF, for example. Similarly, a 3X leveraged short ETF will requir...