SEC Rejects Non-Transparent ETFs in Setback for Industry
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U.S. regulators rejected a proposal by NYSE Arca Inc. to allow trading of a new type of exchange-traded fund, the second setback this week to investment firms’ plans to expand ETFs beyond passive products.
The U.S. Securities and Exchange Commission disapproved a Feb. 7 request by NYSE Arca, a unit of Intercontinental Exchange Inc., for a rule change that would have allowed the listing of managed portfolios, or shares of funds that disclose holdings quarterly instead of daily, according to a letter yesterday on the regulator’s website.