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Since these would help me manage risk in my personal financial portfolio, why are there no exchange traded options on 3x leveraged ETNs?

Is there a prohibition that the SEC is perpetuating? Is there an agreement amongst exchanges not to trade them? If the SEC is approving/disapproving these particular products, what authority is that based on?

I've anecdotally heard "too much leverage" before, but there are ways to get more leverage than options would provide and it also isn't law (although the SEC has historically unparalled discretion over how ETFs and ETNs operate), so any insight into this would be great

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  • Many leveraged ETFs do. Such as SPXL. 3X S&P, with listed options. I'm still studying what can be gained from the strange decay issues these 3X exhibit over time, the daily leverage that can't exist for a year due to volatility.
    – JTP - Apologise to Monica ♦
    Feb 19, 2015 at 16:43
  • @JoeTaxpayer yes, but as you noted, I am curious about the ETNs
    – CQM
    Feb 19, 2015 at 19:25
  • Understood, but you tagged and referenced ETFs as well. Is your question why is it available on leveraged ETFs but not ETNs?
    – JTP - Apologise to Monica ♦
    Feb 19, 2015 at 19:28
  • @JoeTaxpayer I actually created the leveraged-etn and sec tag for this question. the ETF tags were the only ones available. There are a lot of products that attempt to offer 3x exposure which are only available as ETNs with no options.
    – CQM
    Feb 19, 2015 at 19:40
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    @xirt since this question was asked 3 years ago, the SEC has put a lot of 3x products under scrutiny and many were subsequently delisted, so, no.
    – CQM
    Apr 1, 2018 at 2:03

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It may be that exchanges don't perceive there to be enough trading interest to warrant the set up and running cost. I guess you would have to ask them...

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