IOSCO Publishes Results of Examination of ETF Behavior During COVID-19 Induced Market Stresses


Thursday, August 12, 2021 / 3:25 PM / by IOSCO / Header Image Credit:

The Board of the International Organization of Securities Commissions (IOSCO) published a thematic note that examines the behavior of exchange traded funds (ETFs) during the COVID-19 induced market stresses, drawing on market data and observations gathered over the course of the first half of 2020. The information sources include, among others:

  • Data analysis compiled by a core research group from IOSCO's Committee on Investment Management (C5);
  • Responses to a survey from C5 members; and
  • Responses to an industry survey from industry participants.

The report reviews the operation and activities of the primary and secondary markets of ETFs during this period. In particular, it explores the impact of the stress on the ETF structure and functioning and the causes of the pricing differences between some fixed income ETFs' secondary market prices and their net asset values (NAVs). It also outlines some challenging circumstances for some derivatives-based ETFs.


Overall, available evidence has not indicated any significant risks or fragilities in the ETF structure, although a subset of ETFs temporarily experienced unusual trading behaviors. The analysis could prove instructive when IOSCO considers future enhancements to ETF regulation and guidance.

Proshare Nigeria Pvt. Ltd.


In accordance with its 2021-2022 Work Program, IOSCO is continuing its broader analysis of the ETF market in 2021. As part of this, it will consult on ETF policy proposals in late 2021/H1 2022.


Ashley Alder, Chair of the IOSCO Board, said: "This report is an important milestone as we continue our evaluation work following the COVID-19 induced market stresses.

The COVID-19 volatility was a significant stress test for ETF structures and operations. Based on the findings set out in this report, no imminent risks associated with these observations have been identified from a regulatory or financial stability perspective. In fact, empirical evidence and stakeholder feedback tend to suggest that the ETF structure was relatively resilient throughout."

Proshare Nigeria Pvt. Ltd.

Related News

1.       ETF: Foreign Transactions on NGX Hit 99.64% as NewGold Leads as the Most Active Stock

2.      NGX ETF Market Capitalization Hits N20.32bn in Q1 2021

3.      NSE Lists 687,142 Additional Units of NewGold ETF

4.      NSE CEO Welcome Remarks At The NSE ETF Workshop

5.      NSE, Meristem Highlight the Benefits of ETFs as a Smart Investing Tool

6.      NSE Promotes ETFs As A Sound And Viable Investment Option

7.      NSE CEO’s Welcome Address at 2018 Exchange Traded Products Conference

8.     NSE ETF Market Capitalisation Declined by 2.57% to N7.43bn in May 2018

9.      Assets Invested In ETFs and ETPs Listed In Middle East and Africa Fell By $343m In April 2018

10.  CBOE Recommends That The SEC Allows Bitcoin Exchange-Traded-Funds

11.   Global ETFs in 2017

12.   ETF Market Capitalization Grew by 0.91% in October 2017

Proshare Nigeria Pvt. Ltd.

Related News