The Commission does not believe that the listing and trading of the Shares is likely to increase the likelihood of manipulation of the copper market and, correspondingly, of the price of the Shares. Generally, the Commission believes that increased transparency helps mitigate risks of manipulation....Roger that, no increase in likelihood, over.
From Barron's Focus on Funds column:
Regulators OK BlackRock’s Copper ETF
BlackRock’s (BLK) iShares exchange-traded fund unit was given the greenlight to launch iShares Copper Trust in a regulatory filing dated Friday. The plan and a similar one by J.P. Morgan Chase (JPM) have together stoked opposition among end users of the metal, some of whom predict a supply crunch. Regulators have argued that the funds’ copper stockpiles wouldn’t disrupt the supply of copper available for immediate delivery.In addition to the links above, here's the SEC's Feb. 22 "Notice of Filing of Amendments..."
Read here a three-page summary of the objections by copper end-users including Southwire Co. and Encore Wire Corp. (WIRE).
Here’s how the SEC handles this issue in last week’s filing, which is a worthwhile read if you’ve ever wondered about the cause-and-effect of building exchange-traded funds. The SEC isn’t convinced that this one will harm prices....MORE
