- In a decision issued today, the SEC denied applications by Precidian Investments and BlackRock (BLK -0.3%) seeking to launch actively-managed ETFs which would not have been required to disclose portfolio holdings on a daily basis.
- Active ETFs are available in the U.S., but SEC rules requiring daily disclosure of holdings are among the factors discouraging providers - worried about their ideas being front-run - from offering the products. The proposal blocked today would have allowed for the funds to be more like mutual funds - disclosing holdings quarterly, and often with a 60-day lag.
- Behind the SEC denial, is concern the mechanism proposed to keep the market price of these funds in line with NAV is insufficient.