The Commodity Futures Trading Commission’s Division of Clearing and Risk (DCR) has issued a statement clarifying its role in the clearing of options on spot commodity Exchange-Traded Funds (ETFs).
The DCR has determined that these options, which are on shares of ETFs registered with the Securities and Exchange Commission (SEC) and listed on SEC-registered exchanges, will be cleared and settled by the Options Clearing Corporation (OCC).
The DCR’s position is that these spot commodity ETF shares are likely to be classified as securities. As a result, the CFTC does not have jurisdiction over their listing or the clearing of their options.
The OCC, as a registered clearing agency under SEC oversight, will assume responsibility for clearing these options.
