SEC Accelerates Commodity Trust Listings for Major Exchanges
Published Date: 9/22/2025
Notice
Summary
The SEC just gave a green light to Nasdaq, Cboe BZX, and NYSE Arca to create easy, one-size-fits-all rules for listing commodity-based trust shares. This means these exchanges can now list these investment products faster and more smoothly, helping investors get quicker access to commodity funds. The new rules kick in right away, making trading simpler and potentially saving money on delays.
Analyzed Economic Effects
7 provisions identified: 5 benefits, 1 costs, 1 mixed.
Faster Listings for Commodity ETPs
The SEC approved generic listing standards so Nasdaq, Cboe BZX, and NYSE Arca can list Commodity-Based Trust Shares under Rule 19b-4(e) without submitting a separate Section 19(b) filing. This lets exchanges bring funds to market faster and reduces burdens on issuers and other market participants.
Liquidity Safeguard: 85% Readily Available
If a trust has on a daily basis less than 85% of its assets readily available to meet redemptions within one business day, the trust must adopt written liquidity risk policies and procedures, reviewed at least annually, describing strategy, cash holdings, borrowing sources, and percentage of assets that are encumbered or restricted.
Delisting Thresholds for Small Trusts
An Exchange will consider suspension or delisting (after the initial 12-month period) if a trust has fewer than 50 record and/or beneficial holders, fewer than 50,000 shares issued and outstanding, or a market value of all shares issued and outstanding of less than $1,000,000.
Eligibility Rules for Underlying Commodities
For generic listing, each commodity (or commodity underlying a commodity-based asset) must either trade on an Intermarket Surveillance Group (ISG) member market, or underlie a futures contract listed on a designated contract market (DCM) that has been made available to trade for at least six months and is covered by a comprehensive surveillance-sharing agreement. Alternatively, on an initial basis only, an ETF that provides at least 40% of its net asset value exposure to the commodity may qualify.
Mandatory Public Disclosures for Trusts
To list generically, each trust must publish on a free public website before the market open: ticker, identifiers, descriptions and quantities of holdings, percentage weightings, current net asset value per share, prior business day market price and premium/discount, prior-day trading volume, and an effective prospectus available for download. The Exchanges must post specified information within five business days after trading starts for a new derivative securities product under Rule 19b-4(e).
When Exchanges May Halt Trading
Exchanges may halt trading in a Commodity-Based Trust Share on the day there is an interruption in dissemination of the underlying reference asset(s) or index value, the intraday indicative value, required disclosure information, or the net asset value. Some Exchanges may also halt for market conditions or other unusual circumstances.
Firewalls and Market-Maker Limits
Exchanges require registered market makers to identify accounts for trading in underlying commodities and may limit their trading in underlying commodities or derivatives in certain circumstances. If an index is maintained by a broker-dealer, or a trust is affiliated with an entity that can influence commodity price or supply, firewalls and written policies must be implemented to prevent misuse of material non-public information and manipulative acts.
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