Investors in exchange-traded funds (ETFs) could see fewer instances of prices drifting significantly away from their underlying value, particularly during sharp market moves. New trading rules that came into effect on September 7 change how ETF price bands are set and bring reference prices closer to actual market levels, with limits tailored to different asset classes.
The changes are particularly significant for gold and silver ETFs, which now have a pre-open auction and greater flexibility for price bands to expand when global bullion prices move sharply overnight.
