This results in extra costs from the paper chase, as well as the need to stay ahead of slippery supply and demand equations for their investors, says Murray Coleman for Index Universe. Managers hope that regulations might streamline the paper chase so that they don’t have to constantly try to figure out the demand/supply equation.
United States Commodities Funds will be watching every detail, as the sort of portfolios USCF put together using futures contracts and derivatives could be more accurately defined as ETPs. Those who run portfolios based on futures contracts and volatile commodities have been complaining about the hurdles for years.
Industry experts agree that those who are supportive of regulators feel whatever rules or regulations the impose, they should be designed to help investors.
For more stories about commodity ETFs, link to our commodity category.