SEC Proposes Streamlining ETF Exemption Process

Law360, New York (March 5, 2008, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has proposed two new rules, which, if approved, will allow certain funds to trade without obtaining an exemption from regulators.

The new rules, made public on Wednesday, would modify the Investment Company Act to allow exchange-traded funds to make trades without first applying to the SEC for an exemptive order. Exchange-traded funds resemble mutual funds in their construction, although ETFs issue shares that trade throughout the day and at changing prices.

Investors also purchase ETFs from other ETF holders, rather...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.