The seller must own the commodity at the time of sale. Short selling—selling something before owning it—is not acceptable under the rules described.
For a commodity fund, this means trading operations must be built around actual ownership rather than merely promising to deliver something the fund does not own.
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Commodity Funds: Real Trade, Not Paper Commodity Exposure
The seller must own the commodity at the time of sale. Short selling—selling something before owning it—is not acceptable under the rules described.
For a commodity fund, this means trading operations must be built around actual ownership rather than merely promising to deliver something the fund does not own.