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May 16 (Reuters) - The U.S. Securities and Exchange Commission put on hold its initial approval of a risky exchange-traded fund that promises four times the daily price moves of S&P 500 futures contracts, the Wall Street Journal reported, citing people familiar with the matter.
The earlier approval, given by the SEC's staff, has been reconsidered due to which the ForceShares Daily 4X US Market Futures Long Fund and Short Fund will not to begin trading, the Journal reported.
The commission could ultimately reverse or uphold the staff's decision, the WSJ said.
The SEC had approved a request to trade quadruple-leveraged exchange-traded funds earlier this month, marking a first for the growing market for such products in the United States.
The request to list the leveraged ETFs was filed by Intercontinental Exchange Inc's NYSE Arca exchange.
One of the funds is designed to deliver 400 percent of the daily performance of S&P 500 stock index futures, while another fund will aim to deliver four times the inverse of that benchmark. That means a fund could go up 8 percent on a day the index it tracks falls by 2 percent.
An SEC spokesperson could not be immediately reached for comments.
ETFs offering three times leverage already trade in the United States, but more reactive products have been limited to listing in Europe. (Reporting by Diptendu Lahiri in Bengaluru; Editing by Anil D'Silva)