The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Barclays Against ETF Liquidity Requirement

Barclays Global Fund Advisors said that the liquidity of exchange-traded funds should be addressed through more disclosure, not tougher liquidity requirements.

The Securities and Exchange Commission has asked ETF providers to weigh in on whether it should impose stricter liquidity requirements to prevent ETFs with illiquid assets from trading at substantial discounts or premiums, or if more disclosure would solve the problem. ETFs now may not invest more than 15% of assets in illiquid securities.

Barclays said that the ETF market regulates itself effectively on liquidity issues because spreads that grow too wide adversely affect the ETF, adding that it did not believe any of its ETFs ever had such an issue. Barclays said it “believes there is ample experience that demonstrates the shares of ETFs that hold relatively less liquid securities trade effectively in the secondary market.” 

More stories from Fund Action

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree