SEC Approves Nasdaq ISE Rule Change for Listing Options on Commodity-Based Trusts Holding Multiple Crypto Assets
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The SEC has approved a rule change by Nasdaq ISE that allows the exchange to list and trade options on shares of Commodity-Based Trusts holding 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 past 12 months and must underlie a derivatives contract traded on a market with which ISE 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 surveillance criteria, opening transactions may be suspended. This expands investor hedging and exposure tools for multi-asset crypto trusts.
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Key Changes
- Expands listing criteria to Commodity-Based Trusts holding multiple crypto assets instead of only single-asset trusts
- Each crypto asset must maintain average daily market value of at least $700 million over the last 12 months
- Each crypto asset must underlie derivatives contracts on markets with comprehensive surveillance sharing agreements with ISE via ISG
+ 3 more changes with Pro
Obligations
What this law requires
Each crypto asset in a Commodity-Based Trust must have an average daily market value of at least $700 million over the past 12 months to qualify for options listing
Each crypto asset in a Commodity-Based Trust must underlie a derivatives contract traded on a market with which ISE has a comprehensive surveillance sharing agreement (directly or through ISG membership)
Monitor on a monthly basis whether each crypto asset in the Commodity-Based Trust maintains an average daily market value of at least $700 million over the last 12 months
Suspend opening transactions in options on Commodity-Based Trust shares if any crypto asset no longer meets the $700 million average daily market value threshold or surveillance criteria
Underlying shares of Commodity-Based Trusts must trade on a national securities exchange and qualify as NMS stocks under Rule 600 of Regulation NMS