NYSE Arca Tweaks Rules for Managed Portfolio ETFs
Published Date: 7/17/2025
Notice
Summary
NYSE Arca just updated rules for certain Managed Portfolio Shares, like the FM Compounders Equity ETF and Gabelli Growth Innovators ETF, to reflect new exemptive relief. This change helps these ETFs trade more smoothly without extra regulatory hurdles, starting immediately. Investors and fund managers can expect a quicker, easier process with no new fees or delays.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
ETFs May Use Custom Creation Baskets
Certain Managed Portfolio Shares (including named FM and Gabelli series and the DoubleLine Shiller CAPE U.S. Equities ETF) are now permitted to use "Custom Baskets" that can include instruments not in, or in different weightings than, their prior Pro Rata Baskets. This change reflects the Amended Reference Order (issued December 10, 2024) and updates the Funds' listing representations to allow these alternate Creation Baskets.
Change Effective Immediately Upon Filing
The Exchange filed the proposed rule change on July 8, 2025 and the Commission waived the usual 30-day operative delay, making the rule change operative upon filing. Investors and fund managers in the affected series can rely on the Amended Reference Order and the updated listing representations immediately.
Exchange Says Change Could Boost ETF Competition
The Exchange states that permitting the Funds to operate consistent with the Amended Reference Order (allowing Custom Baskets) could promote competition among ETF products and be to the benefit of investors. The Exchange also states the proposed change does not impose a burden on competition.
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