FSB has published a note considering potential financial stability issues that may arise from recent trends in Exchange Traded Funds (ETFs). It notes the strong and fast growth of the ETF marketplace and the breadth of innovation. It notes concerns that the market now covers asset classes that typically have thin liquidity and low transparency, and also the challenges of counterparty and collateral risk that increased use of synthetic ETFs causes. It suggests some measures that ETF providers and regulators might take to protect financial stability. (Source: Potential financial stability issues arising from recent trends in ETFs)