The Securities and Exchange Commission (SEC) is reviewing a rule change proposed by NYSE Arca, Inc. to list and trade shares of the COtwo Advisors Physical European Carbon Allowance Trust. This proposal was initially published for comment in the Federal Register on September 5, 2024, and involves trading under NYSE Arca Rule 8.201-E for Commodity-Based Trust Shares. The SEC has extended the deadline to decide on the approval of the proposal, as modified by Amendment No. 1, to May 3, 2025, because it needs more time to consider the details. This extension falls within the SEC's regulatory framework that allows a total time period of 240 days from the initial publication to make their final decision.
Simple Explanation
The SEC is taking extra time until May 2025 to decide if NYSE Arca can list a special type of stock that is connected to carbon allowances, which help reduce pollution. They need a bit more time to think it over carefully.