The SEC last week proposed a new derivatives rule for investment companies, including mutual funds and ETFs. The Investment Company Act limits funds’ ability to use derivatives such as forwards, futures, swaps and options. The proposed rule would permit funds to enter into these derivatives transactions, provided that they comply with certain conditions. The proposed rule can be found here: http://www.sec.gov/rules/proposed/2015/ic-31933.pdf.
SEC Proposes New Derivatives Rule for Investment Companies
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