Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Portfolio > Alternative Investments > Commodities

Optimism on Gold-ETF Options

X
Your article was successfully shared with the contacts you provided.

It appears the Securities and Exchange Commission (SEC) and the U.S. Commodities Futures Trading Commission (CFTC) have agreed to resolve jurisdictional authority with regard to options trading on exchange-traded funds.

This is a major step forward which could lead to options trading on many popular commodity-linked ETFs, like the streetTRACKS Gold Shares (GLD), the PowerShares DB Commodity Index Tracking Fund (DBC) and the iShares S&P GSCI Index Trust (GSG).

Over the past few years, the issue of who regulates what has been complicated because many commodity-related ETFs contain physical commodities or futures contracts on commodities. Almost all commodity ETFs are registered under the Securities Act of 1933, which is governed by the SEC despite the fact that commodities are regulated by the CFTC.

An exact timetable on when options on commodity ETFs will start trading is hard to predict, but it may be sooner rather than later. Stay tuned.

Ron DeLegge is the San Diego-based editor of www.etfguide.com.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.