SEC Approves NYSE American Rule Change to List Options on Commodity-Based Trusts Holding Multiple Crypto Assets
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The SEC approved NYSE American's proposed rule change to amend Exchange Rule 915. This allows the exchange to list and trade options on shares of Commodity-Based Trusts that hold multiple crypto assets without needing additional Commission approval. Each crypto asset in the trust must have an average daily market value of at least $700 million over the last 12 months and must underlie a derivatives contract traded on a market with which NYSE American has a comprehensive surveillance sharing agreement. The options will follow the same initial and continued listing standards as ETF options. Continued listing requires monthly monitoring; if any crypto asset fails the $700 million threshold or the surveillance agreement condition, opening transactions may be suspended.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Amends Exchange Rule 915, Commentary .06(v) to permit options on Commodity-Based Trusts holding multiple crypto assets
- Each crypto asset must maintain average daily market value of at least $700 million over last 12 months
- Each crypto asset must underlie derivatives contract on market with comprehensive surveillance sharing agreement via ISG
+ 3 more changes with Pro
Obligations
What this law requires
NYSE American must verify that each crypto asset in a Commodity-Based Trust has an average daily market value of at least $700 million over the last 12 months before listing options on that trust
NYSE American must confirm that each crypto asset in a Commodity-Based Trust underlies a derivatives contract traded on a market with which NYSE American has a comprehensive surveillance sharing agreement (directly or through ISG membership) before listing options
NYSE American must monitor on a monthly basis whether each crypto asset in a Commodity-Based Trust maintains an average daily market value of at least $700 million over the last 12 months
NYSE American must suspend opening transactions in options on Commodity-Based Trust shares if any crypto asset no longer has an average daily market value of at least $700 million over the last 12 months
NYSE American must suspend opening transactions in options on Commodity-Based Trust shares if any crypto asset no longer underlies a derivatives contract on a market with which NYSE American has a comprehensive surveillance sharing agreement