The SEC has partially lifted the moratorium on applying for certain active ETFs: those using derivatives.

The moratorium is almost three years old, reports Reuters and Bloomberg.

Norm Champ, the director of the regulatory agency's investment management division, said there are two conditions on considering the applications for active ETFs, according to Reuters. They are: "the funds' boards periodically review and approve their use; and the funds disclose the use of derivatives periodically consistent with SEC guidance."

Tom Lydon, Global Trend Investments president, was encouraged by the news.

"This will mean more choice and more options for the end investor," he said. 

Edited by: HFD


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