• 17 Dec 2012 at 3:20 PM

SEC OKs Plan To Devastate Copper Market, Economy

Always looking to keep things interesting, the SEC has approved plans for an exchange-traded fund that will “wreak havoc on the U.S. and global economy.”*

JPMorgan Chase & Co. (JPM) won regulatory approval for the first U.S. exchange-traded fund backed by physical copper, which some industrial users said may disrupt the market.

The proposed rule change by NYSE Arca Inc. to list JPM XF Physical Copper Trust was approved, the regulator said in an order on its website dated Dec. 14. BlackRock Inc. (BLK) and ETF Securities Ltd. also have said they plan to start physically backed ETFs for industrial metals in the U.S.

The SEC dismissed worries that the ETFs would result in all available copper being scooped up and warehoused, pushing civilization back into the Stone Age.

JPMorgan Wins Approval for First U.S. Physical Copper ETF [Bloomberg]
SEC Backs J.P. Morgan’s Plans for Physical Copper ETF [WSJ]
SEC approves JPMorgan copper ETF [FT]
Red Kite Warns Copper ETF Would ‘Wreak Havoc’ [FINalternatives]

*According to a hedge fund that may have a dog in this fight.

4 comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments (4)

  1. Posted by Guest | December 17, 2012 at 4:19 PM

    Good job Mr. Poopy Pants!

  2. Posted by Louis Winthorpe III | December 17, 2012 at 5:48 PM

    As if the mining sector wasn't doing poorly enough already. On the "plus" side, this might reduce mining equity valuations to levels that will finally entice private equity to get involved.

  3. Posted by el guesto | December 17, 2012 at 5:51 PM

    I'll admit, this made it move, just a little:

    "The SEC dismissed worries that the ETFs would result in all available copper being scooped up and warehoused, pushing civilization back into the Stone Age."

  4. Posted by Jim Bob Moffat | December 17, 2012 at 5:59 PM

    I like FCX in here for a while