BlackRock to SEC: Drop ETFs From New Fund Liquidity Safeguards
- Asset manager says rules should be tailored to ETF features
- BlackRock joins ICI and Vanguard in questioning SEC plan
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BlackRock Inc., the world’s largest provider of exchange-traded funds, is urging U.S. regulators to exclude the products from potential rules that could crimp investment returns.
A proposal issued by the Securities and Exchange Commission in September would require mutual funds and ETFs to hold more assets that can be easily sold during market routs. The SEC’s plan addresses concerns that investors could be harmed if they try to flee funds that hold a lot of high-yield bonds and other riskier debt. That’s what triggered the collapse of the $788.5 million Third Avenue Focused Credit Fund last month.