SEC seeks public comment on ETPs
17 June 2015 Washington DC
Image: Shutterstock
The US Securities Exchange Commission (SEC) has appealed for public comment to aid its review of listing and trading of new, novel or complex exchange-traded products (ETPs).
Specifically, the SEC is appealing for comments on the issues that arise if exemptions are sought by a market participant to trade a new ETP, or if a securities exchange seeks to establish standards for listing new ETPs.
Mary Jo White, chair of the SEC, said: “Exchange-traded products have become an increasingly important investment vehicle to market participants ranging from individuals to large institutional investors.”
She added: “As new products are developed and their complexity grows, it is critical that we have broad public input to inform our evaluation of how they should be listed, traded, and marketed to investors, especially retail investors.”
The request for comment is also targeted at arbitrage mechanisms, market pricing, legal exemptions and other regulatory positions related to ETP trading. It is also inviting comments on how ETPs are sold, especially to retail investors, and on investors’ understanding of the nature of ETPs.
The public comment period will remain open for 60 days.
Specifically, the SEC is appealing for comments on the issues that arise if exemptions are sought by a market participant to trade a new ETP, or if a securities exchange seeks to establish standards for listing new ETPs.
Mary Jo White, chair of the SEC, said: “Exchange-traded products have become an increasingly important investment vehicle to market participants ranging from individuals to large institutional investors.”
She added: “As new products are developed and their complexity grows, it is critical that we have broad public input to inform our evaluation of how they should be listed, traded, and marketed to investors, especially retail investors.”
The request for comment is also targeted at arbitrage mechanisms, market pricing, legal exemptions and other regulatory positions related to ETP trading. It is also inviting comments on how ETPs are sold, especially to retail investors, and on investors’ understanding of the nature of ETPs.
The public comment period will remain open for 60 days.
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