Federico Cupelli, EFAMA

Concern over ETF liquidity in secondary market is inevitable but misplaced says EFAMA’s Cupelli


“With such a visible shift of assets into passive strategies, it is inevitable that the ECB and regulators view the growth of the ETF industry with some concern,” says Federico Cupelli (pictured), senior regulatory policy adviser at EFAMA.  

However, he believes that there are misconceptions around the true liquidity resilience of the ETF structure. “ETFs play a role in offering liquidity in the sense that they are easy to trade, fully transparent, cheaper than ordinary mutual funds and can on several occasions act as a proxy for the underlying market by aiding price discovery.”

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