ETF providers and investors have guardedly welcomed the Financial Stability Board's call for greater scrutiny of exchange-traded products.
The super-regulator on Tuesday warned recent innovation in the ETP industry is bringing "new elements of complexity and opacity" into the market. iShares says a number of recent developments in ETFs require closer scrutiny and says it is "encouraging" the FSB is calling for transparency. The issuer also agrees with concerns over the potential conflicts of interest where swap-based ETFs and their derivative trading counterparts are within the same group. iShares says: "Risks increase if the bank considers the synthetic structure as a stable and inexpensive source of funding for illi...
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