On August 12, the Board of the International Organization of Securities Commissions (IOSCO) released a thematic note outlining the results of its examination of exchange traded funds (ETFs) behavior during COVID-19 induced market stresses during the first half of 2020.

The Report reviewed the operation and activities of the primary and secondary markets of ETFs and found that the ETF structure was “relatively resilient” and not subject to ‘any significant risks or fragilities’.

IOSCO findings and observations focuses on various aspects, including:

• Day-end premium or discount to Net Asset Value (NAV)

• Bid-ask spread

• Secondary market turnover of exchanged-traded securities

• Fund flows (primary market activities)

• Fund flows of ETFs compared to unlisted open-end mutual funds

• Stresses around derivatives-based ETFs…

IOSCO will pursue its analysis of the ETF market in 2021 and will consult on ETF policy proposals in 2021-2022.