ETF providers seek to manage regulatory pressure

The July 2013 issue of ETF Risk covers regulation, leveraged ETFs, smart beta strategies, indexes, securities lending and counterparty risk

ETF providers find themselves caught between a rock and a hard place. They are being pushed for more disclosure around the mechanics of their products, but casting light where before there was darkness risks inhibiting the strategies they deploy in investing – or diminishing their profit margins.

Regulators want ETF indexes to be more transparent to eliminate conflicts of interest that are possible between index firms and affiliated ETF providers, but market participants claim publishing