The US regulator has halted the review of over 100 ETFs with a leverage of 3x or 5x, citing concern around value-at-risk (VaR).
The US Securities and Exchange Commission (SEC) is urging nine exchange-traded fund (ETF) providers to resolve risk-related issues arising from their proposed leveraged ETFs and pause their launch, according to letters it sent out on 2 December. The filings, submitted to the SEC between 3 June to 21 November, cover over 100 ETFs referenced across index, single stock, commodity and crypto with daily target of (-)3x or (-)5x leverage. ‘We write to express concern regarding the