2025-09760NoticeWallet

SEC Reviews Nasdaq Proposal for Commodity Trust Options Trading

Published Date: 5/30/2025

Notice

Summary

The SEC is reviewing a proposal from Nasdaq ISE to let people trade options on units tied to Commodity-Based Trusts. This change could open up new investment choices for traders and might impact how certain securities are listed and traded. The SEC will decide by May 27, 2025, whether to approve or reject this update, so keep an eye out for the final call!

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Options on Commodity-Based Trusts Allowed

The SEC is reviewing a Nasdaq ISE proposal to allow listing and trading of options on units that represent interests in Commodity-Based Trusts (called Commodity-Based Trust Shares). If approved, those options would trade under the same listing, margin, position-limit, expiration, strike-price, minimum-increment, and surveillance rules that apply to other ETF options, giving investors an additional way to hedge or trade exposure to commodities. The Commission instituted proceedings and is working toward a decision by May 27, 2025; comments are due June 20, 2025 and rebuttals by July 7, 2025.

No Extra SEC Approval Needed for ETF Options

The proposal says that any Exchange-Traded Fund Shares approved to list on their primary market as a Commodity-Based Trust Share would qualify for options listing on Nasdaq ISE without additional approvals from the Commission, provided other Exchange listing criteria are met. That means options on such ETFs could be listed on the Exchange more quickly once the ETF is approved on its primary market.

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Key Dates

Published Date
5/30/2025

Department and Agencies

Department
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Agency
Securities and Exchange Commission
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