A top member of a U.S. securities regulator on Monday called for a more transparent and rigorous review process before approving rule changes to list riskier exchange-traded funds that she believes could harm retail investors.
Securities and Exchange Commission Democratic member Kara Stein called for the reforms as part of a three-page dissent over a rule change that paved the way for seven new exchange-traded funds from AccuShares Investment Management LLC to list on the Nasdaq stock market exchange.
The ETFs use so-called “Paired Class Shares” to issue and redeem shares of opposing share classes that move in opposite directions, known as “Up Shares” and “Down Shares.”
Among the ETFs named are an industrial metals spot fund, a crude oil spot fund, and a natural gas spot fund.
Source: Reuters