Publications and Presentations

Moriarty on the SEC’s Moves to Curb Leveraged ETFs in The Wall Street Journal

June 6, 2016

In "SEC Moves to Curb Leveraged ETFs," Corporate partner Kathleen Moriarty spoke with The Wall Street Journal about the recent news of the Securities and Exchange Commission (SEC) moving to limit a type of ETF allowing small investors to try to double, or even triple, the daily return of stock markets, or even bet on such swings in the opposite direction. 

This potential restriction reflects the SEC's effort to rein in the riskiest activities of mutual funds, which were not a problem when these ETFs were initially approved during more upbeat economic times.

Moriarty, who has shepherded novel ETFs through regulatory hurdles since the early 1990s, said the products have worked as advertised, and noted that, "It was still a good economy and people were thinking about innovative products, and the SEC was really trying to facilitate the creation of innovative products."

The agency is moving ahead and will make a final decision on the rule this year.

» Read the full article on The Wall Street Journal (subscription required).

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