The debate over whether ETFs are dangerous to the market is finally getting a congressional hearing. Over the past year, ETFs have been accused of increasing market volatility as well as posing other risks to the financial system.
A subcommittee of the Senate Banking Committee held a hearings Wednesday entitled “Market Microstructure : Examination of Exchange-Traded Funds (ETFs). The hearing was conducted by Sen. Jack Reed (D-R.I.).
IndexUniverse.com published the congressional testimonies of the four panalists:
• Noel Archard, managing director at iShares, the world’s biggest ETF firm
• Harold Bradley, chief investment officer at the Kauffman Foundation, and co-author in the past year of two papers critical of ETFs
• Eric Noll, an executive at Nasdaq, the second-biggest U.S. exchange, in charge of transaction services
• Eileen Rominger, director of the Securities and Exchange Commission’s Investment Management division