The Financial Industry Regulatory Authority has increased the margin limits on investors who hold leveraged and inverse ETFs in their portfolios as of Dec. 1. But the agency postponed to April 30, 2010 the implementation of increased margin requirements for over-the-counter and uncovered options on leveraged ETFs as well as day-trading requirements.

According to FINRA, the deferred date is designed to give the ETF options market time to complete an ongoing overhaul of the method of identifying ETF options contracts, expected to be completed by mid-February.

As far as the new rule for leveraged ETF margins goes, the maintenance margin requirement for portfolios will now be adjusted to accommodate the inherent leverage of these positions. That is, investors who hold leveraged and inverse ETFs will not be able to take on as much extra margin as investors who hold traditional securities.

Pre-Dec. 1, margin costs were 25 percent of the market value for a leveraged long ETF and 30 percent for a leveraged short ETF. Now, these values will be multiplied by the leverage of the ETF to determine the margin requirement.

The new rules strive to minimize the volatility leveraged ETFs impose on retail investors.

You can read IndexUniverse.com's original coverage in September of the ruling here.

You can also find FINRA's ruling notice here.