US regulators release joint‐rule proposal regarding futures contracts on debt indexes and securities
| Date | 01 October 2006 |
| Pages | 402-407 |
| Published date | 01 October 2006 |
| DOI | https://doi.org/10.1108/13581980610711162 |
| Author | Andrew P. Cross |
| Subject Matter | Accounting & finance |
FEATURE ARTICLE
US regulators release joint-rule
proposal regarding futures
contracts on debt indexes
and securities
Andrew P. Cross
Reed Smith LLP, Pittsburgh, Pennsylvania, USA
Abstract
Purpose – The purpose of this paper is to provide professionals in the global financial services
industry with a useful summary of the proposed rules set out in April 2006 by two US regulatory
agencies – the Commodity Futures Trading Commission and the Securities and Exchange
Commission.
Design/methodology/approach – The paper begins with background information regarding this
regulatory structure and concludes with an overview of the proposed rules.
Findings – The issuance of these proposed rules is part of the continuing evolution of the regulatory
structure in the US related to securities-based futures contracts and is, therefore, best understood
within that broader context.
Originality/value – The discussion of the proposed rules situates the continuing evolution of the
securities-based futures contracts in the broad context of the US regulatory structure.
Keywords Futures markets,Securities markets, Financial services,Financial control,
United States of America
Paper type General review
Executive summary
In April 2006, two US regulatory agencies – the Commodity Futures Trading
Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) – issued
a joint proposal (the (“Proposing Release”)[1] to adopt rules and rule amendments that
relate to the regulation of futures contracts on debt securities indexes (“Debt Index
Futures”) and futures contracts on individual, non-governmental debt securities (“Debt
Security Futures”). As described in the Proposing Release, the proposed rules have two
purposes:
(1) to set forth criteria for debt index futures which, if satisfied, would allow such
qualifying contracts to trade subject to the exclusive jurisdiction of the CFTC;
and
(2) to expand the statutory listing standards requirements to permit the trading of
debt security futures, as well as debt index futures on narrow-based security
indexes.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
The author would like to thank Michael J. Budicak, a colleague in the Philadelphia office of Reed
Smith for his research, analysis, and contributions to this paper.
JFRC
14,4
402
Journal of Financial Regulation and
Compliance
Vol. 14 No. 4, 2006
pp. 402-407
qEmerald Group Publishing Limited
1358-1988
DOI 10.1108/13581980610711162
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