ETF debate should focus on diversification of counterparties, says Source's Lytle

The debates being played out over the potential dangers of exchange traded funds (ETFs) are about diversification of counterparties not synthetic versus physical, says Source's managing director. The comments from regulatory bodies such as the Financial Services Authority, the Bank of England and the Serious Fraud Office have mainly centred around synthetic (or swap-based) ETFs, leading some ETF providers to speculate that they have in part been driven by those with a vested interest in creating fears about synthetic ETFs. Michael John Lytle, London-based managing director at Source d...