Financial regulators globally are ramping up supervision and imposing limits on exchange-traded funds (ETFs), Financial Times reports. The International Organization of Securities Commissions (Iosco) has initiated a global study of the threats the funds pose to financial stability.
Iosco will issue draft proposals for new international regulations in early 2012 for the funds, which often use derivatives and swaps to track or bet against baskets of equities and commodities. The proposals will be forwarded to the global regulatory body and implemented by the group of twenty leading economies.
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