The very strong growth of collateralised structured operations in the context of synthetic ETFs and ETF-based securities lending suggests that there are significant benefits for authorities and ETF market participants alike in improving their understanding of the risks attached, and the ways in which they can be mitigated. The current protracted period of low interest rates provides incentives for re-leveraging in non-standard market segments, which may lead to a build up of financial vulnerabilities, especially as the process of financial repair is not complete. Potential destabilising interactions with other financial innovations (., high- frequency trading9 ) that could amplify negative effects also.
