ETF managers have begun selling off future positions and creating shares through the use of swaps in an attempt to obviate the troubles associated with position limits. However, the CFTC is asking Congress for the authority to regulate over-the-counter markets, which include bilateral swaps. [CFTC actions prompt fee hikes.]
Still, ETFs such as the United States 12-Month Natural Gas (NYSEArca: UNL) will go on as normal, since it does not rely on near-month futures contracts. UNG tracks the average prices of 12 futures contracts on natural gas that are made up of near-month contracts set to expire and the contracts for the following 11-months.
For more information on commodities, visit our commodity category.
- United States Natural Gas (NYSEArca: UNG)
- United States Oil (NYSEArca: USO)
- United States 12-Month Natural Gas (NYSEArca: UNL)
Max Chen contributed to this article.