jakiro
source:SEC official website, compiled: bitchain vision
The Securities and Exchange Commission (SEC) announced on September 17 local time that it voted to approve the rules proposed by three national stock exchanges.Allows general listing standards for exchange-traded products (ETPs) holding spot goods (including digital assets).These exchanges may list and trade shares of commodity trusts that meet the approved general listing criteria without prior submission of a change of rules to the SEC under Section 19(b) of the Securities Exchange Act.
SEC Chairman Paul S. Atkins said:By approving these general listing standards, we ensure that our capital markets remain the best place for cutting-edge innovation in digital assets around the world.This approval helps maximize investor options and promote innovation by simplifying the listing process and lowering the threshold for US trusted capital market digital asset products.”
“The committee approved the general listing standard to bring products to market through a reasonable, rule-based approach while ensuring investor protection, providing much-needed regulatory clarity and certainty to the investment community,” said Jamie Selway, Director of Transactions and Marketing at SEC.
In addition to approving general listing standards based on commodity trust shares,The SEC also approved the listing and trading of Grayscale Digital Large Cap Fund, which holds spot digital assets based on the CoinDesk 5 index.The SEC also approved the listing and trading of PM settlement options for the Chicago Options Exchange Bitcoin U.S. ETF Index and the Mini – Cboe Bitcoin U.S. ETF Index., the expiration dates of these options include the third Friday, non-standard expiration date and quarterly index expiration date.
SEC committee member Hester M. Peirce then issued a statement to explain the approval of the general listing standards for commodity ETP.The statement said the SEC approved the general listing and trading of certain commodities-based exchange-traded products (“ETPs”) on three national stock exchanges, including ETPs holding crypto-asset goods.The general listing standard eliminates the requirement for each ETP to apply for SEC approval in advance under Section 19(b) of the Securities Exchange Act of 1934.on the contrary,If the ETP complies with the general listing standards, the exchange must publish certain information about the ETP on its website within five working days after the ETP starts trading..A simplified listing process will benefit investors, issuers, other market participants and SECs as it reduces the time and resources required to bring new ETPs to market.
The statement said that after much criticized delays and judicial urges, the SEC had previously provided a preliminary approach for the exchange to list spot ETP based on cryptocurrencies.Specifically, the SEC issued an order that an exchange may meet the obligations under Section 6(b)(5) of the Securities Exchange Act by demonstrating that it has entered into a comprehensive oversight sharing agreement with a large regulated market for its underlying assets or reference assets, as such agreements will help to detect and prevent fraud and manipulation related to the underlying assets.Cryptocurrency-based ETP market participants expressed concerns about this standard.Today’s approval addresses these concerns by providing rule-based alternative eligibility criteria for underlying assets of commodity-based ETPs, including crypto-based ETPs.
Under the new general listing rules, to become a qualified holding asset of an ETP, commodities must be traded in a market belonging to the cross-market monitoring group, or their futures contracts must be traded in a designated contract market regulated by the Commodity Futures Trading Commission (CFTC) for at least six months.in addition,If an exchange-traded fund (ETF) that provides economic exposure to a certain commodity is listed and traded on a national stock exchange, then an ETP that provides investment exposure to the same commodity can also be listed and traded on the exchange according to the general listing standards approved today..Currently, given the general listing standards approved by the SEC when adopting the ETF rules under the Investment Companies Act, exchanges do not have to conduct a lengthy Section 19b-4 review process for such ETFs.Today’s universal listing standards offer the same treatment for ETPs covering commodities.
Exchanges are still required to submit rules to the SEC when seeking listing and trading ETPs that do not meet the approved general listing standards..Based on public opinions on exchange proposals and market demand, exchanges may consider gradually relaxing their eligibility standards.For example, an exchange may propose objective quantitative criteria as another qualification option to enable more products to enter the market faster and more predictably.
