iShares says some ETF providers are not transparent enough about risks

first_img whatsapp THE world’s biggest provider of exchange-traded funds (ETF) BlackRock’s iShares admitted yesterday that the ETF market needs to address issues with transparency and “potential conflicts of interest” but said that “some firms are more transparent and clear than others”.The firm was responding to a report by the Financial Stability Board (FSB), an international regulatory body affiliated with the Bank of International Settlements, which said increasing complexity and the growth of ETFs tracking illiquid asset classes and using derivatives were concerning.iShares’ Joe Linhares said: “iShares has always been transparent about the revenues generated and the risk framework surrounding the activity.”The FSB said that ETF investors, who are often pension funds or unsophisticated retail investors, could be exposed to risks they are not aware of, particularly in swap-based ETFs: “Since the swap counterparty is typically the bank also acting as ETF provider, investors may be exposed if the bank defaults,” it said. “Problems at those banks that are most active in swap-based ETFs may constitute a powerful source of contagion and systemic risk.”Meanwhile, the Financial Services Authority issued a rebuke to the European Commission for its proposed regulations of high frequency trading, claiming they will be too difficult and expensive to enforce. KCS-content Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap’Small Axe’: Behind the Music Everyone Grooved On in Steve McQueen’sThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap Share iShares says some ETF providers are not transparent enough about risks center_img Tags: NULL Show Comments ▼ whatsapp Wednesday 13 April 2011 8:37 pm Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoMoneyPailShe Was Famous, Now She Works In {State}MoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoeSaver OrgThousands in United States Found the Device That Can Slash The Electricity BilleSaver OrgUndoJournalJoJo Siwa’s Glitter-Filled Rise to FameJournalUndoinvesting.comYou Probably Had No Idea Kris Wrote The Most Iconic Hits Of All Timeinvesting.comUndoCrawl Space RepairFoundation Repair Cost In Scottsdale May Surprise YouCrawl Space RepairUndoYahoo! SearchSearch For Best Bahamas All Inclusive Resorts OfferYahoo! SearchUndolast_img

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