Additionally, the ESMA is even trying to ban the sale of complex, or “synthetic,” ETFs that use derivatives and account for 40% of ETFs available to European retail investors.
“ESMA reiterates the need to tackle these issues and will continue to contribute actively to the regulatory response to these problems, which will come in a new version of the EU Markets in Financial Products Directive,” Reemt Seibel, the authority’s communications officer, said in the article.
BlackRock, which does not offer derivatives-based inverse/leveraged ETFs, proposed to classify the fund type as exchange traded instruments, or EFIs. [BlackRock’s Fink Worried About Leveraged ETFs]
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.
