Levin Statement on SEC Approval of the Copper Exchange-Traded Fund
Monday, December 17, 2012
WASHINGTON – Sen. Carl Levin, D-Mich., today released the following statement on the SEC decision to approve a plan to permit the New York Stock Exchange to list a J.P. Morgan-sponsored copper exchange-traded fund. Earlier this year, Levin had written a comment letter to the SEC opposing the plan.
"The SEC’s approval of the Copper ETF late on Friday continues its misguided foray into commodities markets. Approval of this commodity-based security is a blow to American businesses and consumers that rely on copper for industrial machinery, plumbing, transportation, electric power generation and transmission, and electronics. These securities will be used to speculate in copper, which will increase copper prices and volatility, and undermine market efforts to produce prices in response to supply and demand by copper users, not the supply and demand of speculators. I hope Congress will review this action and act to prevent excessive commodity speculation caused commodity-based ETFs."