Non- And Semi-Transparent Active ETF Models

2019 has been a big year for the exchange-traded fund (ETF) industry, with a series of regulatory approvals that should foster innovation and increase competition. Most recently, on November 14, 2019, the SEC issued notices for four "semi-transparent" active ETF models – the T. Rowe, Fidelity, Blue Tractor, and Natixis/NYSE applications.¹ This, of course, comes on the heels of the SEC's approval in September of the long-anticipated ETF Rule² and the issuance of conditional exemptive relief relating to 1934 Act "class relief," ³ as well as the SEC's May approval of the Precidian's non-transparent active ETF exemptive application. ⁴ In addition, the three ETF listing exchanges, NYSE Arca, Cboe BZX and Nasdaq, have recently proposed changes to their listing rules for most ETFs that should, if approved by the SEC, simplify and streamline the initial and continuous listing standards for ETFs relying on the ETF Rule. ⁵