As part of its mandate, the Financial Stability Board (FSB) monitors market developments and advises on their implications for regulatory policy1 . In doing so, it seeks to identify potential vulnerabilities and the actions that may be needed to address them. The recent rapid growth and innovation in the market for Exchange Traded Funds (ETFs) is a development that the FSB believes warrants increased attention by regulatory and supervisory authorities, as well as by the ETF industry, including providers, market-makers and investors. This note highlights a number of recent developments that call for such attention. ETFs were created in the early.
