Funds can risk up to 200% of portfolio value in derivatives

SEC adopts first-of-its-kind derivatives rule.

A Securities and Exchange Commission rule change allowing fund advisors to risk up to 200 percent of their portfolios’ value is in many ways the ‘summa’ of chairman Jay Clayton’s tenure, writes Bill Myers. It has been a busy period, with the regulator also recently loosening auditor independence rules, and Clayton reportedly pushing to get ad rule reforms done before year-end.

Email prepared by Graham Bippart