Withdrawal comes within days of SEC Chair White and Commissioner
Aguilar issuing public statements regarding ETFs.
On October 19, the US Securities and Exchange Commission (SEC)
published a notice
stating that NYSE Arca, Inc. had withdrawn its proposal (Proposal)
to create generic listing standards for shares of actively managed
exchange-traded funds (ETFs). As we discussed in previous
LawFlashes on this topic,1 listing in accordance with
the proposed standards likely would have significantly reduced the
time required to launch active ETFs.
By withdrawing the Proposal, NYSE Arca avoided forcing the SEC
to make a determination on the Proposal at this time. By law, the
SEC is required to approve or disapprove proposed rule changes,
such as the Proposal, no later than 180 days after publication in
the Federal Register, but the SEC may extend that period
by up to 60 days if it determines that a longer period is
appropriate and publishes the reasons for
