Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
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

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1