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SEC urged to rein in single-stock leveraged and inverse ETFs

The regulator should impose more restrictions, members of its Investor Advisory Committee say

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The Securities and Exchange Commission should prevent leveraged and inverse single-stock exchange traded funds from being called ETFs, members of its Investor Advisory Committee have said.

The single-stock ETFs, which provide leveraged or inverse exposure to just one stock, should be required to disclose more information than other ETFs about their risks and uses, said panellists at a meeting of the committee. They should also be subject to more restrictions, they said.

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