NYSE Arca, Inc. has submitted a proposal to the Securities and Exchange Commission to list and trade shares of the COtwo Advisors Physical European Carbon Allowance Trust, which would allow investors to gain exposure to the European Union's carbon emissions market. This trust intends to invest solely in European Union Carbon Emission Allowances and is designed as a cost-effective way for investors to participate in the market. The proposal highlights various mechanisms to ensure transparency and prevent fraud, including surveillance-sharing arrangements with regulated markets like ICE Endex. The SEC is inviting public comments on this proposal before making a decision.
Simple Explanation
NYSE Arca wants to let people buy and sell shares in a special "trust" that invests in a type of pollution credits from Europe, which helps companies limit how much they pollute. This trust needs approval from a big government group and aims to make it easier and cheaper for people to be part of fighting pollution.