30 May 2025
📈SEC Proposes Rule Change for Options Trading on Commodity Trusts
Self-Regulatory Organizations; Nasdaq ISE, LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend Options 4, Section 3, Criteria for Underlying Securities
Summary
The SEC has initiated proceedings to evaluate a proposed rule change by Nasdaq ISE, which would amend listing criteria, allowing options trading on Commodity-Based Trust Shares. This innovation aims to enhance transparency and investor protection in the trading environment, providing new opportunities for hedging and price discovery.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
This regulatory notice presents significant implications for business owners and executives involved in trading Commodity-Based Trust Shares, as the proposed rule change allows options trading on these trusts without requiring additional approvals, potentially increasing liquidity and market participation.