Breaking News

IBM No Longer Sees Delivering 'at Least $20 Operating EPS' in 2015
Tweet TWEET

Copper Companies File Court Challenge on Copper ETF Plan

Encore Wire Corp. and Southwire Co. asked a U.S. court to review a regulatory decision that cleared the way for JPMorgan Chase & Co.’s planned exchange-traded fund backed by copper.

The copper fabricators said that the order by the Securities and Exchange Commission in December will “lead to an investor-financed squeeze of the market” for copper, according to a petition filed today with the U.S. Court of Appeals in Washington. The companies will seek to have the SEC decision vacated.

“This petition preserves the right to challenge the SEC ruling, and sets the process in motion,” Robert Bernstein, a lawyer at Eaton & Van Winkle LLP in New York, the firm representing the copper companies, said today in a telephone interview.

Industrial copper users including Encore, based in McKinney, Texas, and Southwire last month urged the SEC to reverse its decision. The group has said that the JPM XF Physical Copper Trust, the first U.S. exchange-traded fund backed by physical metal, would leave less for manufacturers, creating shortages and boosting prices.

The shares of Encore have climbed 23 percent in the past 12 months. Closely held Southwire is based in Carrollton, Georgia.

Jennifer Zuccarelli, a spokeswoman at New York-based JPMorgan, declined to comment on the filing.

To contact the reporter on this story: Joe Richter in New York at jrichter1@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.