Efama comments on ECB liquidity concerns around ETFs

Jonathan Boyd
clock • 1 min read

The European Fund and Asset Management Association has published a Comment Paper noting that regulatory concerns around liquidity and counterparty risks in ETFs are "misplaced" - in response to the European Central Bank's findings in November 2018 on such risks. Among the key points addressed in the Paper is that Efama believes the liquidity in the depth of the secondary market is overlooked. "This acts as an additional 'layer' of liquidity when compared to ordinary mutual funds," Efama states, adding that there is evidence this helps cushion against sudden market shocks, facilitating...

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Jonathan Boyd
Author spotlight

Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.

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