SEC said investment companies were not meant to be "highly levered vehicles"
The Securities Exchange Commission (SEC),
the US regulator, proposed on Friday new rules significantly
curtailing the use of derivatives by registered investment
companies including mutual and exchange-traded funds.
The proposed rule limit a
fund’s ability to engage in transactions that
involve potential future payment obligations, including
derivatives such as forwards, futures, swaps and written
Funds will be permitted to use derivatives
provided they meet a number of strict risk management
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