US SEC requests suspension of the new round of high-leverage ETF plans

The U.S. Securities and Exchange Commission (SEC) held a collective meeting on Monday, requesting leveraged ETF issuers to suspend the advancement of a new round of fund plans and to restrict aggressive fund product structures. According to six sources familiar with the matter, the SEC's Division of Investment Management made this request during a brief call with independent trustees and fund legal advisors. The call lasted only a few minutes and did not include a Q&A session. The SEC made it clear that issuers are not allowed to make the proposed products effective and go online, which is the key step of completing fund registration and officially launching the issuance.