The Securities and Exchange Commission (SEC) has published a notice regarding an application for an order under the Investment Company Act of 1940. The order would grant exemptions from certain sections of the Act and a rule under it, allowing ActiveShares ETFs to issue and redeem shares in large batches, and facilitate market transactions at negotiated prices. The application involves the ActiveShares ETF Trust, Legg Mason Partners Fund Advisor, LLC, and Legg Mason Investor Services, LLC, seeking relief consistent with a prior order. The SEC will issue the order unless someone requests a hearing by February 8, 2021, by contacting the SEC via email.
Simple Explanation
The SEC is thinking about letting a special kind of fund, called ActiveShares ETFs, do things differently from normal rules, like trading in big amounts all at once to make buying and selling easier. If anyone wants to say "wait, let's talk about this," they have until February 8, 2021, to tell the SEC by email.