The Potential Impact of Regulation in the ETF Marketplace

Note: This article is courtesy of Iris.xyz

By BNY Mellon

There are a number of pending regulations that can have a potential impact on the exchange-traded fund marketplace. Steve Cook, Managing Director and Business Executive, Structured Product Services, at BNY Mellon discusses how these regulations can potentially impact the marketplace and where there is opportunity for growth.

“There are a number of different regulations that are currently moving their way through various regulators that do have the opportunity to have a big effect on the exchange-traded fund marketplace. Currently, the regulators are looking at inversed and leveraged products and whether or not they are going to continue to allow them to exist or continue to allow retail investors to access those products. They are also reviewing a number of different actively managed non-transparent structures, and that simply means that if you want to offer active management you wouldn’t have to disclose your portfolio holdings completely from one day to the next. Whether or not they allow those to come to market will really dictate where the ETF marketplace goes over the next few years, in that it would allow for a lot more innovation to take place in the market if they do.”

To learn more please watch the video here.

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