Update on Lifting of SEC Moratorium on Active ETF Use of Derivatives

December 10, 2012

The staff of the U.S. Securities and Exchange Commission (the SEC) released no action relief (the Letter) addressed to recipients of 18 prior orders (the Prior Orders) granting exemptive relief to launch actively-managed exchange-traded funds (ETFs) on December 7, 2012. The Prior Orders were issued during the SEC’s moratorium on actively-managed ETFs’ use of derivatives, and thus required actively-managed ETFs offered in reliance thereon to refrain from any investments in options contracts, futures contracts or swap agreements. The Letter allows these ETFs to invest in such derivatives notwithstanding the contrary representations contained in their exemptive applications.

Read “Update on Lifting of SEC Moratorium on Active ETF Use of Derivatives.”