New Rule for Generic Listing and Trading of Class ETF Shares on NYSE
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The NYSE can now list and trade a new class of exchange-traded fund shares without needing prior approval from the Securities and Exchange Commission. This streamlines the process for bringing new ETF products to the market, impacting issuers and investors by reducing time and cost.
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Key Changes
- Allows NYSE to list and trade Class ETF Shares without SEC's prior approval.
- Aligns NYSE's rules with NYSE Arca concerning Class ETF Shares.
- Introduces surveillance procedures for monitoring ETF trading.
Obligations
What this law requires
NYSE must adopt new Rule 5.2(j)(9) to permit the generic listing and trading of Class Exchange-Traded Fund Shares
NYSE must make conforming changes to existing exchange rules to accommodate the proposed listing of Class ETF Shares
Class ETF Shares may only be listed and traded on NYSE without prior SEC approval if they meet the criteria specified in proposed Rule 5.2(j)(9)
An ETF Class must operate pursuant to exemptive relief granted by order under the Investment Company Act and must comply with Rules 5.2(j)(9)(e)(1)(ii) and 5.2(j)(9)(e)(2)(A)(ii) on an initial and continued listing basis
A Multi-Class Fund must be a registered open-end management company that issues Class ETF Shares and one or more classes of non-exchange-traded shares pursuant to Multi-Class Fund Exemptive Relief