United States

SEC publishes report on exchange-traded fund trading halt. The Securities and Exchange Commission (SEC) published a report in which it analyzed the factors that could have contributed to a period of market volatility that stopped trading in hundreds of ETFs on August 24th. On December 29th, Bloomberg Business reported on the study, which pointed to the use of “market orders” that execute at the prevailing market price, no matter how far prices rise or fall, thereby contributing to an excess of selling, which helped further push down prices. (12/29/2015) ETFs.


Canadian securities regulators seek comments on a mutual fund risk classification methodology. The CSA published for comment proposed amendments that would require fund managers to use a standardized risk classification methodology (the Proposed Methodology) when determining a risk level for conventional mutual funds and exchange-traded mutual funds (ETFs) in the Fund Facts and in the proposed ETF Facts, respectively. The CSA is welcoming feedback on the Proposed Methodology, which can be found on CSA members’ websites. The 90-day comment period will close on March 9, 2016. (12/10/2015) OSC press release.