Gold Trust ETFs strengthen SEC, CFTC bond

Highlighting a closer working relationship,, the Securities and Exchange Commission and the Commodity Futures Trading Commission today announced that each has approved the trading and clearing of two novel derivative products: futures and option contracts based on shares of the SPDR Gold Trust exchange traded fund from State Street Global Advisors of Boston. The SEC approved trading in options on the Gold Trust shares and the CFTC approved trading in futures on them. “Today’s approvals offer America’s investors in gold an alternative that may, for many, be a more convenient and cost effective way to manage their risks,” Christopher Cox, chairman of the SEC, said in a statement. “Today’s approvals also represent a significant step forward for the SEC and the CFTC in our inter-agency cooperation. America’s investors deserve a clear and united voice from government regulators on how these products will be treated under the law. “Today’s coordinated product approvals provide that clarity and consistency.” In order to address growing areas of mutual interest, the SEC and CFTC entered into a Memorandum of Understanding on March 11, 2008, that established a permanent regulatory liaison between the agencies. Today’s approvals for the trading of futures and option contracts on shares of the Gold Trust represent the first product approvals under that arrangement.