SEC Grants Relief For ETFs
November 26th at 10:51am by Tom Lydon
The SEC has granted class relief of the Securities Exchange Act of 1934 requirements for fixed-income and international exchange traded funds (ETFs). It is now easier for firms to launch the funds but regulations remain for firms seeking to create ETFs.
The class action relief means that firms creating new fixed-income ETFs and international ETFs no longer have to apply for exemptive relief, reports Tom Leswing for Ignites .com. Since ETFs are similar to mutual funds and publicly traded securities, there are a lot of forms of exemptive relief. The Act also prevents the short selling of funds although ETFs are assortments of securities so short selling doesn’t necessarily bring about changes in a fund’s value. The SEC will not need to respond to individual requests for exemptive relief so it’s efficient for the Market Regulation Division, too.
