Order Approving Rule Change for Options on Multi-Crypto Commodity Trusts
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This rule allows Cboe to list and trade options on trusts holding multiple cryptocurrencies, provided each crypto asset meets certain market value and derivatives trading conditions. This move opens new avenues for investors looking to hedge or gain exposure to multiple crypto assets through Commodity-Based Trusts.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Cboe can list options on trusts with multiple crypto assets without extra approval.
- All crypto assets in the trust must meet market value and trading requirements.
- Trust shares must comply with standard trading rules for options on Units.
Obligations
What this law requires
Each crypto asset held by a Commodity-Based Trust must have an average daily market value of at least $700 million over the last 12 months before options can be listed
Each crypto asset held by a Commodity-Based Trust must underlie a derivatives contract that trades on a market with which the Exchange has a comprehensive surveillance sharing agreement, whether directly or through common membership in the Intermarket Surveillance Group (ISG)
Commodity-Based Trust shares underlying listed options must be NMS stocks
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, determined on a monthly basis
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 the Exchange has a comprehensive surveillance sharing agreement