Schwab Mulls ETF Warnings: Report
April 2nd at 10:30am by John Spence
Charles Schwab Corp. is considering a warning for clients before they trade certain exchange traded products, according to a Reuters report.
“It is under review, primarily because of the risk we saw in things like the TVIX. No one knew that those kind of things were going to happen,” Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research, told Reuters.
The warning would be similar to the one investors receive before they trade options linked to volatility, which are more complex than equities, according to the report.
The note will serve as “a last warning to say, ‘Hey, make sure you know what you are doing. If not, call us and we will explain to you,’” Frederick said.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.