This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Platinum Futures Fund Latest Casualty

NEW YORK ( TheStreet) -- The iPath Dow Jones Platinum ETN (PGM) is the latest exchange traded casualty, as ETF issuers struggle to keep ahead of upcoming futures regulation.

The futures-based platinum fund, which has just $100 million in assets, has halted creation of new shares due to anticipated position limits.

PGM's creation halt follows in the footsteps of new "accountability" limits set by the New York Mercantile Exchange. When it comes to platinum, "accountability" limits are tripped at a lower threshold than other commodities. Currently, the limit is set at 1,500 net futures positions, approximately the same size as PGM's assets.

PGM will now enter into the same precarious territory as funds like United States Natural Gas (UNG), iShares S&P GSCI Commodity Indexed Trust (CSG), iPath Natural Gas (GAZ) and PowerShares DB Crude Oil Double Long (DXO), as it halts creation to stay ahead of regulation.

Halting creation isn't the only way to stay ahead of the regulatory curve. UNG has begun to restructure its underlying methodology, exchanging to-be regulated futures contracts for other investments, like swaps. PowerShares recently also restructured shares of its Deutsche Bank (DB) indexed DB Agriculture (DBA) and DB Commodity (DBC) funds.

During the DBC restructuring process, index provider Deutsche Bank took the unusual step of exchanging New York Mercantile-traded futures contracts for some holdings in Brent Oil Contracts, which trade abroad.

The willingness of these managers to restructure their portfolios suggests that when it comes to commodities ETFs - there's a will and a way.

The case of DXO did not have as neat of a result. The popular leveraged oil fund decided to redeem shares of the fund for value, euthanizing the fund before it could be killed off by regulation.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DBA $20.88 0.00%
DBC $15.32 0.00%
GAZ $1.15 0.00%
GSG $17.52 0.00%
PGM $20.76 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs