ICE Applauds “Rule ETF”
Intercontinental Exchange, Inc., a leading operator of global exchanges and clearing houses and provider of data and listings services, made the following statement today in response to the passage of Rule 6c-11 by the U.S. Securities and Exchange Commission. This rule was designed to modernize the regulation of Exchange Traded Funds (ETFs), bringing new standards to the ETF industry and opening the door to significantly more participation and innovation.
“We applaud the SEC on the adoption of the ETF rule, which is designed to significantly expand participation and help issuers provide greater choice for investors as they look to diversify portfolios and manage risk,” said Ben Jackson, President of ICE. “By allowing all participants to use custom baskets for the creation and redemption process, this rule gives all issuers the flexibility they require, offering significant benefits for both ETF investors and the ETF ecosystem as a whole.”
In October 2019, ICE plans to launch a new service, called ETF Hub, which is designed to bring greater efficiency to the ETF primary market. ETF Hub’s goals of increasing transparency and participation are consistent with the objectives of the new ETF rule’s regulatory framework.
Passive funds represented nearly all U.S. equity inflows.
Centrally cleared and settled transactions have been in continuously increasing demand.
The collaboration allows Citi to scale its fixed income ETF servicing business.
The majority of US ETF issuers are either developing or planning to develop transparent active ETFs.
The next focal point of the crypto market will be over-the-counter derivatives.