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SEC extends review period for JPMorgan ETF

Keywords: Tags  copper, etf, JPMorgan, SEC, New York Stock Exchange, Barbara O'Donovan

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 Copper Trust.

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 (, March 24).

"I was pleased that the SEC appeared to take our concerns into account," Bernstein told AMM.

The copper users represented by Bernstein, which together account for some 50 percent of copper-fabricating capacity in the United States, argue that allowing JPMorgan’s 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.) (, 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.

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