Bringing you live news and features since 2006 

CFTC and SEC approve trading of futures and options on gold ETF


The US financial regulators, the Commodity Futures Trading Commission and the Securities and Exchange Commission have announced that each has approved the trading and clearing of two novel

The US financial regulators, the Commodity Futures Trading Commission and the Securities and Exchange Commission have announced that each has approved the trading and clearing of two novel derivative products, futures and options respectively based on shares of the exchange-traded fund SPDR Gold Trust.

The CFTC’s and SEC’s approval leave it to market forces to determine the viability of the products and are designed to ensure that appropriate public, market participant, and financial protections are in place. The regulators expect the co-ordinated product approvals to enhance legal and regulatory certainty for users of the new products.

Futures contracts on the Gold Trust’s shares will trade on the OneChicago security futures exchange, while options will be listed on the American Stock Exchange, Chicago Board Options Exchange, International Securities Exchange, Philadelphia Stock Exchange and NYSE Arca. The Options Clearing Corporation will clear both types of contracts.

‘The actions announced today represent a major victory for the cause of financial innovation and will help promote competition among America’s financial markets,’ says CFTC acting chairman Walter Lukken.

‘With these actions, the CFTC and the SEC have begun a new era of co-operation, guided by the interagency agreement signed in March this year. I believe that America’s markets and market participants can only benefit from such close co-operation between government regulators.’

Adds SEC chairman Christopher Cox: ‘Today’s approvals offer America’s investors in gold an alternative that may, for many, be a more convenient and cost-effective way to manage their risks.

‘Today’s approvals also represent a significant step forward for the SEC and the CFTC in our inter-agency co-operation. America’s investors deserve a clear and united voice from government regulators on how these products will be treated under the law. Today’s co-ordinated product approvals provide that clarity and consistency.’

To address growing areas of mutual interest, the CFTC and SEC entered into a memorandum of understanding on March 11 that established a permanent regulatory liaison between the agencies. It provides for enhanced information-sharing and articulates various principles that should guide the agencies’ review of novel derivative products containing elements of both securities and commodity futures or options.

In accordance with these principles, the agencies have recognised their mutual regulatory interests and have agreed to encourage innovation, competition, market neutrality, and legal certainty. The approval for the trading of futures and option contracts on SPDR Gold Trust shares represent the first product approvals under the memorandum of understanding.

Latest News

The August data from LSEG Lipper shows that the global ETF industry held USD10,547.4 billion in assets under management on..
HANetf has announced that their European Green Deal UCITS ETF (ticker: EUGD) has reached USD52 million (EUR49.9 million) in assets..
Legal & General Investment Management (LGIM) has announced the launch of the L&G Global Brands UCITS ETF. The firm writes..
Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that..

Related Articles

John Ciampaglia, Sprott Asset Management
Geo-political tensions and concerns about hitting clean energy targets have brought the focus back onto nuclear power in recent months,...
Nick King, Robeco
Europeam investment management giant Robeco has announced the appointment of Nick King as Head of Exchange Traded Funds (ETFs), in...
Kristof Gleich, Harbor Capital
Harbor Capital burst onto the ETF issuance world in 2021 and now has USD1.1 billion in assets in ETFs. But...
Europe’s thematic ETF provider, Rize ETF, has been acquired by ARK Invest LLC, the parent of ARK Investment Management LLC,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by