By Matt Day 
 

The U.S. Securities and Exchange Commission Monday asked a judge to throw out a lawsuit challenging the regulator's approval of the first copper exchange-traded fund.

Southwire Co. last month sued the SEC in federal court, arguing that the agency had erred in its Dec. 14 approval of a copper ETF planned by J.P. Morgan Chase & Co. (JPM).

In papers filed with the Court of Appeals for the District of Columbia Circuit, the SEC said Southwire's suit was "premature" because the company had already filed comments asking the agency to review its December decision.

"The motion is without merit, and we will respond accordingly," said Robert Bernstein, a lawyer representing Southwire. He said the SEC already had rejected Southwire's request to review the regulator's decision allowing the copper ETF previously.

The proposed ETF would be the first U.S. product to store physical copper on behalf of investors, and Southwire has argued that the product would "lead to an investor-financed squeeze of the market" for copper, limiting supply and artificially driving up prices. The SEC has said the product was unlikely to disrupt copper supply and prices.

Southwire Co., of Carrollton, Ga., is the largest U.S. producer of copper wire. The company was originally joined in the lawsuit by wire maker Encore Wire Corp. (WIRE).

Encore later asked to be removed from the case without specifying a reason for the change.

The SEC has yet to approve J.P. Morgan's final prospectus, which would pave the way for the shares listing on NYSE Euronext's (NYX) Arca division.

Write to Matt Day at matt.day@dowjones.com

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