New Esma ETF guidelines change the rules on securities lending in favour of synthetics
The latest European Securities and Markets Authority guidelines for Ucits ETFs will make life more difficult for physically backed ETFs and point to a growing acceptance of synthetic funds
The European Securities and Markets Authority (Esma) passed its verdict on exchange-traded funds (ETFs) on July 25, releasing guidelines that could have significant implications for the use of physically backed ETFs in the region. Most striking is the regulator’s decision to require the profits of securities lending to be passed back to investors, where previously physically backed ETF providers
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