NEW YORK The U.S.
Securities and Exchange Commission (SEC) has extended the
period of review on its decision to allow JPMorgan Chase &
Co.s proposed copper exchange-traded fund (ETF) to trade
on the New York Stock Exchange (NYSE).
The SEC said Thursday it needed
to complete further proceedings to determine whether to approve
NYSE Arca Inc.s proposed rule change to allow JPMorgan to
list and trade shares of the ETF, known as JPM XF Physical
The decision was welcomed by
Vandenberg & Feliu LLP partner Robert Bernstein, who
represents copper users Southwire Co., Encore Wire Corp.,
Luvata, AmRod Corp. and RK Capital Management LLC. Bernstein
publicly objected to the proposed ETF in a letter earlier this
year (amm.com, March 24).
"I was pleased that the SEC
appeared to take our concerns into account," Bernstein told
The copper users represented by
Bernstein, which together account for some 50 percent of
copper-fabricating capacity in the United States, argue that
allowing JPMorgans ETF to trade would seriously affect
the supply of copper available for immediate delivery to
physical consumers. The proposed ETF, which would use LME-grade
copper, has also garnered opposition from Sen. Carl Levin (D.,
Mich.) (amm.com, July 18).
The SEC has now requested that
interested persons submit data and arguments on whether the
proposed rule change should be disapproved by 30 days from
publication in the Federal Register, which Bernstein said is
expected to run shortly.
The SEC is looking for, among
other things, global copper production and consumption
statistics for the past 10 years, comment on what effect the
ETF will have on supply if approved, data on the volumes of
stocks held in LME-registered warehouses, and information on
the process of removing warehouse stocks.
Rebuttals to any submissions are
due 45 days from publication in the Federal Register, according
to the SEC.