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In a bid to stoke competition and innovation in the ETF industry, U.S. securities regulators are modernizing the rules for ETFs.

The U.S. Securities and Exchange Commission (SEC) voted to adopt a new rule and amendments that aim to enhance ETF regulation by codifying exemptive relief that has been required to issue ETFs in the U.S.

Since 1992, the SEC has issued more than 300 exemptions allowing ETFs to operate.

The new rules will allow ETFs that meet certain conditions to come to market directly without the cost and delay of obtaining an exemptive order.

“This should facilitate greater competition and innovation in the ETF marketplace by lowering barriers to entry,” the SEC said.

Additionally, the SEC said that the rules’ conditions are designed to protect investors with standardized disclosure requirements.

“As the ETF industry continues to grow in size and importance, particularly to Main Street investors, it is important to have a consistent, transparent, and efficient regulatory framework that eliminates regulatory hurdles while maintaining appropriate investor protections,” Jay Clayton, chair of the SEC, said in a statement.

The new regime will apply to traditional open-end funds, but not to leveraged or inverse ETFs, or non-transparent ETFs. It takes effect in 60 days, with a one-year transition period for certain provisions.