The Financial Stability Board, which co-ordinates international regulatory initiatives in 24 countries, has warned the growing complexity of Exchange Traded Funds could pose a threat to global markets.

In a research note published today, the FSB said: "ETFs offer on-demand liquidity to investors while they are, in some cases, based on much less liquid underlying assets. This could lead to markets being dislocated in the event of 'massive redemptions'."