U.S. SEC Considers Changes to ETF Approval Process Amid Surge in ETF Applications

The U.S. Securities and Exchange Commission (SEC) is considering changes to its exchange-traded fund (ETF) approval process amid a sharp increase in applications, prompting the regulator to review its existing framework.

The agency currently receives about 200 ETF applications each month, including filings for prediction-market products, according to Bloomberg ETF analyst Eric Balchunas, citing Brian Daly, an official in the SEC's Investment Management Division.

As part of the review, the SEC is exploring a more robust approval process that could allow certain ETF applications to be submitted confidentially. Daly said the proposal aims to protect innovation while reducing the risk of copycat filings before products reach the market.

Source: Eric Balchunas