MutualFundWire.com: Rochte On! SEC OKs Fido

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Tuesday, May 14, 2013

Rochte On! SEC OKs Fido

And the starter pistol has been fired.

Fidelity [profile] recently received approval from the SEC to launch actively managed ETFs.

Fido has been quietly building up its capability in the ETF space. It hired in March 2012 former SSgA executive Tony Rochte to help launch the firm's ETF arm, dubbed SelectCo, in Denver.

Rochte has continued the buildup by hiring former Russell Investments exec Greg Friedman.

What is next for Fidelity and these active products?

A Fidelity spokesperson provided MFWire with this statement:

We are pleased that the SEC has issued an order granting our requested exemptive relief to operate actively managed ETFs. That said, we continue to evaluate the product needs of our clients and it would be premature to discuss our ETF product plans at this time. Until we file a registration statement(s) with the SEC for any of the products we are considering and the registration statement(s) become effective, we are limited under securities laws in what we can say until such time.

On a side note, it will be interesting to see who ends up serving as the market maker(s) of these products.

Currently, Knight Capital serves as the designated market maker for Fideltiy's sole ETF, the Fidelity Nasdaq Composite Index® Tracking Stock Fund.

Fidelity launched its first ETF in 2003 as part of a strategy led by then=top-Fidelity executives Bob Reynolds and .

Of course, Reynolds had since gone over to Putnam. Carney himself has gone through a number jobs, including a new gig at MacKenzie.

Printed from: MFWire.com/story.asp?s=43873

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