The new SEC rule 6c-11 (also known as the ETF Rule) has been passed for a few months now, and ETF issuers only have a few months remaining to make sure that they are fully compliant. The long-awaited rule will bring change to the industry and will help to drive further transparency in the ETF marketplace, but it also comes with additional requirements for ETF issuers to disclose information on their websites.
ADDITIONAL DISCLOSURE REQUIREMENTS
Issuers will now be required to provide more disclosures publicly on their websites.
1. An ETF’s portfolio holdings each day before the opening of the ETF’s primary listing exchange. Each portfolio holding must include:
- An ETF’s portfolio holdings each day before the opening of the ETF’s primary listing exchange. Each portfolio holding must include:
- a. Ticker Symbol trading
- b. CUSIP
- c. Description of holding
- d. Quantity of each security or asset held e. % weight of the holding in the portfolio
- A table and chart showing the number of days the ETF’s shares traded at a premium or discount during the most recently completed calendar year and calendar quarters of the current year
- When the premium or discount is greater than 2% for more than seven consecutive trading days, disclosure is required along with a discussion of the factors that are reasonably believed to have materially contributed to the premium or discount
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