The Securities and Exchange Commission has approved a proposed NYSE Arca rule change that will permit the listing and trading of Equity Index-Linked Securities where the underlying index consists in whole or in part of (i) closed end mutual funds or (ii) ETF Securities which, in each case, are registered under the Investment Company Act of 1940. NYSE Arca stated that trading in these types of securities is subject to the same level of regulation as trading in exchange-listed equity securities. Also, closed-end fund securities and ETF securities trade on the same exchange platforms as equities registered under the Securities Exchange Act of 1934 and are subject to the same exchange trading rules.

NYSE Arca proposed an exception to the requirement that 90% of the index’s numerical value and at least 80% of the total number of component securities underlying an equity reference asset must meet then current NYSE Arca criteria for standardized options trading for situations where no underlying component security represents more than 10% of the dollar weight of such index, and such index has a minimum of 20 component securities.