SEC Approves NYSE Arca 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 has approved NYSE Arca's proposal to amend Exchange Rule 5.3-O(g)(x). This change allows the Exchange to list and trade options on shares of Commodity-Based Trusts that hold multiple crypto assets without requiring 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 Arca has a comprehensive surveillance sharing agreement. The options will follow the same initial and continued listing standards as ETF options, with monthly monitoring for the market value threshold. This expands investment and hedging tools for crypto exposure while maintaining surveillance safeguards against manipulation.
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Key Changes
- Amends Exchange Rule 5.3-O(g)(x) to permit listing options on Commodity-Based Trusts holding multiple crypto assets without further SEC approval
- 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 a market with comprehensive surveillance sharing agreement with NYSE Arca or via ISG
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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
Each crypto asset held by a Commodity-Based Trust must underlie a derivatives contract traded on a market with which NYSE Arca has a comprehensive surveillance sharing agreement, whether directly or through ISG membership
Monitor the average daily market value of each crypto asset in the Commodity-Based Trust on a monthly basis to ensure it meets the $700 million threshold
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
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 Arca has a comprehensive surveillance sharing agreement