The SEC Division of Market Regulation granted no-action relief to two ETFs related to creation and redemption transactions. The no-action relief exempts the funds from the requirements of Exchange Act Rule 15c1-5 and 15c1-6.
The Division agreed not to recommend enforcement action if a broker-dealer executes creation or redemption transactions in shares of the ETFs, without disclosing any control relationship with an issuer of a portfolio position. Further, the Division agreed not to recommend enforcement action if a broker-dealer executes creation or redemption transactions in the shares without disclosing its participation or interest in a primary or secondary distribution of a portfolio position.
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