4 Jun 2025
📈BOX Exchange Proposes In-Kind Transfers for ETF Options
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Rule 7165 Regarding In-Kind Exchange of Options Positions and ETF Shares and UIT Units
Summary
The Securities and Exchange Commission published a notice for BOX Exchange's proposed Rule 7165 to allow in-kind transfers of options positions related to ETFs and UITs. This rule aims to enhance tax efficiency and operational flexibility for these investment vehicles, thus benefiting both the exchanges and the investors.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed Rule 7165 enhances the operational framework for ETFs and UITs by allowing in-kind transfers of options positions, which can lead to increased tax efficiencies and lower transaction costs for investors. This can make such financial products more attractive and competitive in the marketplace.