The SEC needs more time to consider generic listing standards for active ETFs.
On September 2, the US Securities and Exchange Commission (SEC) published a notice (Notice) designating a longer period of time to consider whether to approve a proposed rule change (Proposed Rule) submitted by NYSE Arca, Inc. As we have discussed in prior memoranda, the Proposed Rule would create generic listing standards for shares of actively managed exchange-traded funds (ETFs). Listing in accordance with the proposed standards, if approved, could significantly reduce the time required to launch active ETFs.
The Notice designated November 5, 2015 as the date by which the SEC will approve or disapprove the Proposed Rule. According to the Notice, the purpose of the additional period is to allow the SEC to consider issues raised in comment letters that were submitted on the Proposed Rule. We expect the SEC may also consider the Proposed Rule in light of recent market volatility and comments received in response to a recent release on ETF trading issues.