Thu, Apr 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

ESMA Proposes New Rules on ETFs

Tuesday, January 31, 2012

Bailey McCann, Opalesque New York: The European Securities and Markets Authority (ESMA) is proposing new rules for Exchange Traded Funds (ETFs) according to a position paper released on Monday. The new rules focus on counterparty risk involved with ETFs.

ETFs are bundles of shares, bonds or commodities that are traded like stocks. ETFs allow for lower cost access to indices without having to buy the underlying securities. According to a statement released with the paper, ESMA is offering the guidelines to protect investors and limit overall market risk.

According to Reuters, the new rules will require funds to disclose to investors if they make use of securities lending. Funds will also be required to disclose data about the diversification of the collateral posted. IndexUniverse also notes that the paper stopped short of limiting the use of derivatives by ETFs, a practice which is being utilized by several national regulators.

The new rules will also apply to all UCITS funds and include updates to the naming conventions used for these products. All ETFs that fall with in the UCITS guidelines will n......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. South Korea’s state fund plans to double alternative investments[more]

    From Businessweek.com: Korea Investment Corp., the nation’s $72 billion sovereign wealth fund, plans to double alternative investments over the next 10 years to compensate for declining returns from stocks and bonds. “We’ll have to embrace the lower return expectation from traditional assets and tha