United States: SEC Exempts ETF Series From Certain Regulation M Requirements

The SEC granted exemptive relief to a series of initial exchange-traded funds and funds that will be issued in the future as part of a series (collectively, the "Funds") from the notice requirements of Exchange Act Rule 10b-17.

The exemption provides relief from the prohibitions of Rules 101 and 102 of Regulation M, in connection with secondary market transactions in shares of the Funds, as well as in the creation and redemption of aggregations of shares in the Funds (of at least 10,000 shares, or such an amount where the value of the aggregations is at least $250,000 at the time of issuance). Each fund tracks, or will track, the performance of an underlying index. To track the index, each of the Funds will invest at least 80% of their net assets in securities that comprise their respective index.

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