Enter to open, tab to navigate, enter to select
SEC Requests Public Comment on Exchange-traded Products
Practical Law Legal Update 6-616-4643 (Approx. 3 pages)
SEC Requests Public Comment on Exchange-traded Products
by Practical Law Finance
| Published on 16 Jun 2015 • USA (National/Federal) |
The SEC requested public comment to assist in its review of the listing and trading of new, novel or complex exchange-traded products (ETPs).
On June 12, 2015, the SEC requested public comment to assist in its review of the listing and trading of new, novel or complex exchange-traded products (ETPs). ETPs are a diverse class of financial products that seek to provide investors with exposure to financial instruments, financial benchmarks or investment strategies across a wide range of asset classes. ETPs are widely available to market participants and are traded on national securities exchanges and other secondary markets.
In order to be listed and traded on a national securities exchange, ETPs must comply with or obtain exemptions from several provisions of the US securities laws. The SEC is requesting public comment on key issues regarding the oversight of ETPs under the provisions of the Exchange Act including:
- The exemptive and no-action relief granted to ETPs from various provisions of, or rules promulgated under, the Exchange Act.
- The requirement that a national securities exchange have SEC-approved listing standards applicable to any ETP securities traded on the exchange.
The request for comment also addresses:
- Arbitrage mechanisms and market pricing for ETPs.
- Legal exemptions and other regulatory positions related to the trading of ETPs.
- Securities-exchange listing standards for ETPs.
- Broker-dealer sales practices in selling ETPs, especially to retail investors.
- Investors’ understanding of the nature and use of ETPs.
The public comment period will remain open for 60 days following publication of the comment request in the Federal Register.