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NYSE Successfully Petitions for a Simplified Listing Process for Actively Managed ETFs

Written by John D'Antona | Jul 25, 2016 12:37:12 PM

ICE.com – NEW YORK – The New York Stock Exchange (NYSE), part of Intercontinental Exchange (NYSE:ICE), announced receipt of Securities and Exchange Commission (SEC) approval to streamline the listing process for certain actively managed ETFs.

Since 2000, NYSE has worked collaboratively with the industry and the SEC to simplify the listing process for issuers. Effective immediately, many actively managed funds will be able to list new ETF products without a separate filing with the SEC under SEC Rule 19b-4,[i] a process that can create uncertainty for the issuer.  This change will align the launch process for index-based and actively managed ETFs.

According to Doug Yones, NYSE Head of Exchange Traded Products, the NYSE is focused on initiatives designed to promote innovation in the growing ETF industry.

“We are pleased that our efforts to rationalize the listings process for actively managed funds will provide issuers with greater certainty on timing and efficiency when launching new products,” Doug said.

“The NYSE is committed to reducing complexity in U.S markets to benefit issuers, market participants and investors. We are also proud to support our issuer community with the largest, most liquid, and highest quality ETP market, coupled with an unparalleled service model to navigate each stage of their product life cycle, from product development, launch and then active trading.”

NYSE Arca currently lists 1,571 ETPs from over 70 issuers, which includes 103 actively managed funds, and is the leading exchange in both assets under management (AUM), number of listed ETPs, and ETP traded volume.

[i] Unless an exchange-traded product meets SEC approved “generic” listing standards, as were recently approved for certain actively-managed transparent funds, SEC Rule 19b-4 under the Securities Exchange Act of 1934 requires an exchange to file with the SEC a detailed description of a new derivative product, including options, warrants, hybrid securities and ETFs, on Form 19b-4 and for the SEC to approve the filing, before the exchange can list such a new derivative product. More information on the Form 19b-4 is available on the SEC website.