The Securities Exchange Commission (SEC) has issued a series of warning letters to some of the country's most prolific providers of highly leveraged exchange traded funds, effectively blocking the launch of products designed to offer double or triple daily returns on stocks and commodities.
In nine nearly identical letters released on Tuesday, the SEC told companies including Direxion, ProShares and Tidal that it would not proceed with its review of the proposed offerings until key issues were resolved. The central concern for regulators is that the funds' risk exposure could exceed the SEC's limits on the risks that funds can take relative to their assets. The letters instruct fund managers to either modify their investment strategies or formally withdraw their applications.
SEC suspends approval of highly leveraged ETFs, concerned about risk overrun
2025-12-03 02:12:39
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