SEC Releases Statement on Foreign Currency Holdings

The staff in the SEC’s Division of Investment Management recently released a statement on disclosures provided by exchange-traded funds (ETFs) in accordance with Rule 6c-11 of the Investment Company Act of 1940. Topics covered in the statement include:

• Portfolio transparency and ETF arbitrage.
• Types of information that must be furnished in portfolio holding disclosures under Rule 6c-11.
• The SEC staff’s view that “an ETF that holds any currency other than U.S. dollars should identify the specific currency to satisfy the requirement in Rule 6c-11(c)(1)(i)(C) to provide an adequate description of the holding.”