‘Disquieting developments’ in ETFs warrants attention: FSB

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The Financial Stability Board (FSB) on Tuesday cautioned that innovation in exchange-traded funds (ETFs) warranted the attention of investors and regulators.

The FSB warned in a note entitled Potential Financial Stability Issues Arising From Recent Trends in Exchange-Traded Funds, that "the drivers and implications of the recent wave of financial innovation in ETF markets warrants closer surveillance of potential vulnerabilities by financial stability authorities to ensure that the market grows

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