--- title: "ETF View Meeting #2 Summary" description: "ETF View Meeting #2 recap: T+1 settlement risk, active ETF classification challenges, and next steps ahead of October 2026." image: https://www.etfview.com/hubfs/Untitled%20design%20(2).png --- [![ETF View - Independent ETF Forum logo](https://www.etfview.com/hubfs/Logo%20%20Main.svg)](https://www.etfview.com/) - [ABOUT](https://www.etfview.com/about) - [INSIGHTS](https://www.etfview.com/insights) - [FAQ](https://www.etfview.com/faq) - [COMMUNITY](https://www.etfview.com/our-community) - [CONTACT US](https://www.etfview.com/contact-us) Meeting Insights # ETF View Meeting #2 Summary 7 July 2026 | Held under Chatham House Rule [Bernie Thurston](https://www.etfview.com/insights/author/bernie-thurston) Jul 9, 2026 --- #### T+1 Settlement Ultumus presented a proposal to address the NAV timing gap under T+1 settlement, specifically for ETFs with Asian and EM market exposure. The proposed mechanism uses a fund-level buffer fee on creation orders, with a true-up cash adjustment settled the following day on an order-by-order basis. Feedback from the group was broadly cautious. The main concern was balance sheet impact for market participants operating across multiple issuers simultaneously, with spreads expected to widen as a result. Several participants noted that existing true-up processes already handle this in practice and questioned whether a formal buffer adds unnecessary complexity. The US T+1 transition was cited as a reference point, concerns ahead of go-live largely did not materialise. No industry consensus exists on the buffer question, and the debate continues across regulatory working groups. The key open question remains: who bears the risk, and is it material enough to justify the operational build? Regardless of the outcome, the group agreed that structural preparation should begin now – PCF and systems changes would require approximately six months of lead time if needed, and the capability should be built even if ultimately kept as a fallback. #### Active ETF Classification There was broad agreement that the current binary active/passive classification is no longer fit for purpose. The majority of new active launches sit in an “index-aware” middle ground – low tracking error, index benchmarked, but technically classified as active. Lumping these alongside genuinely high-conviction, intraday-rebalancing products creates confusion for investors and market participants alike. Proposed dimensions for a better framework included rebalancing frequency, tracking error, degree of trader discretion, and forward-looking PCF availability. However, each of these metrics has limitations, and no clean solution emerged. The analogy to SFDR – similarly subjective, similarly contested – was widely felt. The group agreed to wait for regulatory guidance before proposing a formal framework, while recognising that the industry will need more than two categories to adequately communicate risk to end investors. #### Pre-Launch Market Maker Communication Flagged as a growing operational challenge as ETF products become more complex, but deferred to Meeting #3 due to time. A dedicated agenda slot will be allocated. #### Next Steps - Ultumus to circulate a proposal paper on active/passive classification framework ahead of the next meeting - Pre-launch market maker communication to be a standalone agenda item at Meeting #3 - Next forum: October 2026 (date TBC)  [Meeting Insights](https://www.etfview.com/insights/tag/meeting-insights) ## Similar posts Thought Leadership ### [Gold on Blockchain: New ETF Listings | ETF View](https://www.etfview.com/insights/new-etf-listings-someone-has-put-physical-gold-on-a-blockchain-and-gold-was-already-doing-fine) New ETF listings cover buffer funds, physical gold on a blockchain, SPDR fund closures and Vanguard launches. Bernie Thurston Jun 5, 2026 Thought Leadership ### [Bitcoin Goes Green, Pikachu Electric | ETF View](https://www.etfview.com/insights/bitcoin-goes-green-pikachu-electric-etf-view) New ETP listings cover green Bitcoin exposure, electric themes, bond ETF launches and ESG fund closures. 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Bernie Thurston Jun 15, 2026 [![ETFView Logo Light](https://www.etfview.com/hubfs/ETFView%20Logo%20Light.svg)](https://www.etfview.com/) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Bernie Thurston", "url" : "https://www.etfview.com/insights/author/bernie-thurston" }, "dateModified" : "2026-07-09T08:30:24.710Z", "datePublished" : "2026-07-09T07:14:19.000Z", "headline" : "ETF View Meeting #2 Summary", "image" : [ "https://www.etfview.com/hubfs/Untitled%20design%20(2).png" ], "mainEntityOfPage" : { "@id" : "https://www.etfview.com/insights/etf-view-meeting-2-summary", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.etfview.com/hubfs/Logo%20%20Main.svg" } } } ```