Nasdaq Amends Rules for Simpler Commodity Trust Share Listings
Published Date: 9/18/2025
Notice
Summary
Nasdaq wants to make it easier to list commodity-based trust shares by creating clear, simple rules everyone can follow. This change affects investors and companies dealing with these shares and could speed up how new products hit the market. The SEC is now asking for public feedback before giving the green light.
Analyzed Economic Effects
8 provisions identified: 6 benefits, 1 costs, 1 mixed.
Faster Listing for Commodity ETPs
If you issue exchange-traded products (ETPs), Nasdaq proposes you could list qualifying Commodity-Based Trust Shares under SEC Rule 19b-4(e) without submitting a separate Section 19(b) filing for each new product. That change would let qualifying new products be approved and begin trading more quickly on Nasdaq.
Broader Holdings Allowed in Trusts
Nasdaq proposes Commodity-Based Trust Shares could hold not only physical commodities but also commodity-based assets (futures, options, swaps), securities, cash, and cash equivalents. The rule also allows such shares to be issued by a trust, limited liability company, partnership, or similar entity, so long as the product would not be an investment company under the Investment Company Act of 1940.
New Website Disclosure Rules
Trusts would have to post free, public website information before the opening of trading, including ticker and identifier, descriptions and quantities of holdings, percentage weightings, the Trust's current net asset value per share, market price and premium/discount as of the end of the prior business day, a table and line graph of days trading at premium/discount, median-ask spread (computed from 10-second intervals over the last 30 days), liquidity risk policies, NAV methodology, prior day trading volume, and the effective prospectus.
Liquidity Risk & Staking Rules
If a Trust has less than 85% of its assets readily available to meet redemptions on any day, it must have written liquidity risk policies and procedures that are reviewed at least annually. The Trust must disclose holdings that are segregated, pledged, encumbered, or otherwise not liquid within one business day, and the rules specifically call out staking of digital assets (for example, if staked assets exceed 15% of Trust assets).
Minimum Size for Continued Listing
For continued listing after the first 12 months, Nasdaq may initiate delisting if a Trust (with more than 60 days until termination) has fewer than 50 record or beneficial holders, or if the Trust has fewer than 50,000 Trust shares outstanding, or if the market value of all Trust shares issued and outstanding is less than $1,000,000. The proposal also requires each Commodity-Based Trust Share to have a stated investment objective.
No Leveraged or Inverse ETPs
The proposal forbids Commodity-Based Trust Shares from seeking to provide returns that are a specified multiple of, inverse to, or multiple inverse of an index or reference asset over a predetermined period. In other words, leveraged and inverse products would not be permitted in this product class.
15-Second Dissemination and Halt Rules
Nasdaq would require the value of the underlying reference asset(s) and the Intraday Indicative Value to be made widely available at least every 15 seconds; if these values are not available, Nasdaq may halt trading the same day or by the next trading day. The net asset value must be calculated at least once daily and made widely available to all market participants.
Firewalls for Index & Affiliates
If a Commodity-Based Trust Share's value is based on an index maintained by a broker-dealer, the broker-dealer must erect and maintain a firewall around personnel who maintain the index. If a Trust is affiliated with an entity that can influence the price or supply of a commodity held by the Trust, the Trust must implement firewalls and written policies to prevent misuse of material non-public information and to prevent fraudulent or manipulative acts.
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