Key Takeaways:
SEC notice seeks comment on NYSE Arca proposal requiring 85% of assets meet eligibility standards. NYSE Arca rule would count derivatives by gross notional value, impacting crypto trust qualification calculations. Crypto and commodity trusts may use up to 15% in non-qualifying assets while remaining compliant. SEC Notice Opens Comment Period on 85% Asset Rule ProposalNYSE Arca is seeking to revise Rule 8.201-E, the generic listing framework for commodity-based trust shares. Under the proposed change, at least 85% of a trust’s net asset value would need to be held in assets already allowed by the rule. Those assets may include qualifying commodities, commodity-based assets, securities, cash, and cash equivalents. The remaining 15% could include other assets that do not independently meet the rule’s eligibility criteria, as long as the trust otherwise remains compliant. The filing states:
“The exchange proposes to amend Rule 8.201-E (Generic) to modify the generic listing standards for commodity-based trust shares.”
Eligibility Rules Highlight Limits on Derivatives and Non-Qualifying Assets“The exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.”
