To liquidate

Everything seems to be under attack these days. Now it is the ETF department where regulators are asking questions about leveraged ETFs and commodity ETFs. These have become so big that they start to dominate the underlying markets. What do we read?
From Reuters:

It was the second day in a row in which holdings had fallen. [GOL/SPDR] SPDR has shed about 53 tonnes over the past month, the largest drop ever for the fund.
"The rise in SPDR holdings has been a major factor driving the market higher and if the fund is now turning around to be a seller, that would be a major bear factor,

But there is more.

A US legislative plan to regulate the near-$600,000bn market in OTC derivatives suggests that lawmakers debate the idea of banning so-called “naked credit default swaps”, which allow investors to speculate on the creditworthiness of companies. The proposal by key congressional committees would push most derivatives on to an exchange or clearing house but leaves open the issue of whether to outlaw CDSs, in which the buyer does not own the underlying asset.

Sphere: Related Content