SEC AND CFTC COOPERATE TO APPROVE TRADING IN OPTIONS AND FUTURES ON GOLD ETF

The SEC and CFTC announced joint and simultaneous approval of trading in futures and options contracts on a gold ETF (the SPDR Gold Trust). The SEC will regulate trading in options on various stock exchanges and the CFTC will regulate trading in futures on a security futures exchange. The chairmen of both the SEC and the CFTC lauded the new era of cooperation between the agencies in an effort to properly regulate while allowing innovation.

OUR TAKE: This type of cooperation between the SEC and the CFTC is new and welcome. Perhaps, this proves the case promulgated by Treasury Secretary Paulson that the securities markets would be better with one regulator rather than several.

http://www.sec.gov/news/press/2008/2008-105.htm