The Commodity Futures Trading Commission (CFTC) is considering a
request to allow trading in options of ETF Securities' physical
platinum and palladium exchange-traded funds.
If the CFTC approves the request, it would mark the first time
option trading is allowed for platinum and palladium ETFs. Precious
metals ETFs such as the SPDR Gold Shares ETF (NYSEArca:GLD), the
iShares COMEX Gold Trust (NYSEArca:IAU) and Silver Trust ETF
(NYSEArca:SLV) already have permission to trade derivatives.
To begin trading options on its ETFS Physical Platinum Shares
(NYSEArca:PPLT) and the ETFS Physical Palladium Shares
(NYSEArca:PALL), ETF Securities and its clearing agent must first
obtain "exemptive relief" under Rule 4(c) of the Commodity Exchange
Both PPLT and PALL, as well as gold and silver ETFs, have been
gathering assets at a steady pace at a time of heightened
uncertainty in the global economy. PALL added $6.9 million in
September, lifting assets to $436.4 million, according to data
compiled by IndexUniverse.com. PPLT collected $40.7 million,
bringing assets to $537.8 million.
Part of both platinum's and palladium's allure is that the white
metals are crucial components in the catalytic converters used
throughout the automotive industry, meaning they are both precious
and useful. Platinum and palladium also play important roles in
electronics manufacturing, dentistry and chemical
The request for exemptive relief was made by the Options
Clearing Corporation (OCC), the world's largest equity derivatives
The OCC acts as both the issuer and guarantor of options and
futures contracts and is jointly owned by the American Stock
Exchange, the Chicago Board Options Exchange, the International
Securities Exchange, the Pacific Exchange and the Philadelphia
Don't forget to check IndexUniverse.com's ETF Data
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