FINRA Lays Down Law for Leveraged Funds By Don Dion About this article: Although it enjoyed double-digit gains today, leveraged funds such as Direxion 3X Daily Financials Bear could see reduced trading after new margin rules take effect in December. FINRA sent out a "special alert" today about increased margin requirements for leveraged ETFs. This could serve as an additional blow to the popular "ultra-long" and "ultra-short" strategies that have grown tremendously in popularity in 2009. New margin requirements will stipulate that investors have margin "commensurate" with the funds' strategies. The most recent blow to leveraged funds comes after a summer of trouble for issuers like Direxion, Rydex and ProShares. In June, FINRA released a statement to caution brokers about the funds. The September release recalls that: "FINRA recently reminded firms of their sales practice obligations with respect to leveraged and inverse ETFs, including the risks caused by the fact that most of these funds are designed to achieve their... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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