New Esma ETF guidelines change the rules on securities lending in favour of synthetics

sweet-etfs
Esma guidelines are sweet for synthetics

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 were accustomed to taking those profits for their own book or using them to subsidise the fees charge

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