FSA slams leveraged ETFs

The regulator's latest discussion paper goes on to consider the possibility of publishing a list of such products as part of an adoption of less interventionist means to steer the market. The distribution of this material, the FSA stresses, would not amount to banning the named products, but "would make it clear that the starting point is that these products are unsuitable for most retail customers." Leveraged ETFs use derivative instruments such as futures contracts and swaps to give long or short returns of a particular index. However, confusion arises because of a strategy of daily...