Nasdaq ISE, LLC has proposed a change to its rules to allow the listing and trading of options on Commodity-Based Trust Shares. These shares are tied to commodities and cash held in a trust, such as gold or bitcoin, and the proposed rule would enable options on these shares to be traded similarly to other Exchange-Traded Funds (ETFs). The Securities and Exchange Commission (SEC) is currently seeking public comments on this proposal to ensure it aligns with existing securities laws and promotes a fair and open market. The change is intended to provide investors with more options for managing risk in a transparent and regulated market.
Simple Explanation
Nasdaq wants to make new rules so people can trade special kinds of "options" on things like gold or bitcoin, similar to how they trade other funds. The SEC is checking to make sure these new rules are fair and safe for everyone.