Simon Quoted on Frozen ETFs

Foley Partner George Simon was quoted in an article titled “SEC Aims To Limit Hedge Fund, Leveraged ETFs” in the May 2010 issue of Exchange Traded Funds Report. Simon discusses the Securities and Exchange Commission’s decision to freeze all fund company applications to launch new lines of leveraged exchange-traded funds (ETFs), noting that the SEC is uncomfortable with the idea of investors buying double-leveraged ETFs on margin. He adds that the SEC is also nervous about the lack of transparency with the swaps that leveraged and inverse funds rely on and is trying to impede the growth of these products.