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Proposed SEC rule on derivatives sparks fear of ETF closures

Published Sun, Dec 13, 2015 · 09:50 PM

DeeperDive is a beta AI feature. Refer to full articles for the facts.

New York

A US Securities and Exchange Commission proposal to clamp down on how funds use derivatives has industry officials worried that some exchange- traded funds may have to close or change their investment strategy.

The rule proposed on Friday would require funds to hold cash reserves to cover potential future losses on derivatives.

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