SEC To Lift Moratorium On Active ETF's Use Of Derivatives

Law360, New York (December 7, 2012, 7:02 PM EST) -- A top official with the U.S. Securities and Exchange Commission said Thursday that the agency would lift its moratorium on applications for actively managed Exchange Traded Funds that use derivatives, a move that experts say will give investment managers greater flexibility in managing ETFs.

The SEC will once again consider applications known as exemptive requests from actively managed ETFs that use derivatives to make gains and manage risk, according to a speech by Norm Champ, the director of the SEC’s Division of Investment Management.

“Division staff...
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