Whether this counts as actual exposure or leveraged exposure depends on the rules of the exchange, as well as on your philosophical interpretation of what debt actually is.
While this would be beneficial to trading volumes (who doesn’t want more upside exposure for the same outlay?), it will obfuscate even further the actual state of the markets. Regulators will struggle to understand where risk might be accumulating, and the lack of insight could lead to poor policy decisions.
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