The Securities and Exchange Commission has said that its staff is reviewing whether there is a need to revamp derivatives trading rules for mutual funds and exchange traded funds.

The SEC said that it was the right time to have a look at the rules that govern derivatives trading by funds. It wants to determine if any changes are needed to provide better protection to investors. There has been increasing concern recently that derivatives trading has become too sophisticated to be governed by rules that were set many years ago. [Read more…]