ESMA proposes rules to boost transparency of ETFs

01/31/2012 | Reuters

The European Securities and Markets Authority proposed requiring exchange-traded funds to disclose details about collateral they hold and whether they lend out securities. The regulator's draft rules tackle concerns about ETFs' counterparty risk and complexity and aim to increase the sector's transparency. "The aim of these guidelines is to enhance investor protection and limit the risk of certain practices by strengthening, in particular, the standards applicable to collateral received in the context of activities such as securities lending," said ESMA Chairman Steven Maijoor.

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