BlackRock calls for tougher stance on ETP labelling

BlackRock has called on the European markets authority to improve the way exchange-traded products are labelled, including identifying synthetics, and increase transparency over conflicts of interest.

The call comes in BlackRock’s response to a major consultation by the European Securities and Markets Authority (ESMA) on the regulation of ETPs which closed last week. Joe Linhares, managing director and head of BlackRock iShares EMEA, called on ESMA to ensure product labels help investors, including making distinctions between synthetic and physically-replicated vehicles. “The difference between ETNS, ETCs, ETIs and ETFs should be very clear. It is kind of an alphabet soup and we want to make the difference obvious to investors,” he said. In its submission to ESMA, BlackRock said: ...