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SEC May Target Exchange-Traded Notes Next in Push to Simplify

A regulatory push to make complex securities easier to understand could change how banks disclose risks for exchange-traded notes for the first time since they began trading in 2006.

Lenders may not be adequately explaining to investors how they value ETNs, Amy Starr, head of the Securities and Exchange Commission’s capital markets trends office in Washington, said at an industry conference last week. ETNs, which combine bank debt and derivatives, trade on exchanges and are tied to assets from gold and stocks to volatility indexes.