The Securities and Exchange Commission (SEC) received a notice from The Nasdaq Stock Market LLC about a proposed rule change related to the ALPS Active REIT ETF, allowing it to list and trade shares under Nasdaq Rule 5750. This rule pertains to the trading of Proxy Portfolio Shares, a type of actively managed exchange-traded fund (ETF) whose portfolio details are disclosed after a delay to protect against market manipulation. Nasdaq emphasizes the importance of maintaining transparency and compliance with regulations while ensuring that all necessary information about the fund and its trading is accessible to both regulators and investors. The SEC is seeking public comments on this proposal within a specified time frame.
Simple Explanation
Nasdaq wants to let a special kind of fund, called the ALPS Active REIT ETF, be bought and sold like a regular stock, but it won't show exactly what it owns right away to stop others from copying or cheating. The rule helps keep things fair, and the people in charge are asking everyone what they think about it.