By Suzanne McGee and Ateev Bhandari

(Reuters) -The United States Securities & Exchange Commission told Reuters that it is “unclear” whether the dozens of recent filings by asset managers to issue highly leveraged ETFs would be approved by the agency.

Since the U.S. government shutdown began, “the agency has received a large number of registration statements for ETFs seeking to offer 3x and 5x leveraged, equity-linked exposure,” said Brian Daly, director of the SEC’s division of investment management. “It is unclear whether these ETFs would comply with the Derivatives Rule (Rule 18f-4), which generally limits leverage to 2x.”

SEC staff will not be able to review the new filings until after the shutdown is over, Daly added.

(Reporting by Suzanne McGee)

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