The U.S. Securities and Exchange Commission has issued an official order granting the Chicago Mercantile Exchange Inc. (CME) conditional exemptive relief from specific settlement requirements that apply to certain cash-settled security futures contracts, according to an official announcement published in the Federal Register on July 15, 2026.
The order, identified as Release No. 34-105882 and published at 91 FR 43410, was issued under Section 36 of the Securities Exchange Act of 1934 and Rule 6h-1(d) thereunder. It exempts CME, on a conditional basis, from the opening price settlement requirements set out in Rule 6h-1(b) of the Exchange Act for the specific category of cash-settled security futures covered by the relief.
The action follows a formal application process. According to the Federal Register filing, CME submitted an application for the exemption in February 2026, and the SEC published a notice of that application along with a request for public comment at that time. The July 2026 order represents the SEC’s final determination granting the requested relief, subject to conditions.
Rule 6h-1 generally governs how certain security futures products must be settled, including requirements tied to opening prices. The conditional exemption means CME is not required to comply with those particular opening price settlement rules for the covered contracts, provided it meets whatever conditions the SEC has attached to the relief. The full text of those conditions spans five pages in the official Federal Register document.
The order is categorized as a Notice by the SEC and carries docket file number S7-2026-04. It applies specifically to CME and to the cash-settled security futures contracts identified within the order, rather than to the broader futures or securities markets.
For market participants, broker-dealers, or investors involved in security futures products traded on CME, this regulatory change may affect how certain contracts are settled. Those with questions about how this exemption applies to their specific situation should consult the official Federal Register document or contact the SEC directly, as the full conditions and scope of the relief are detailed in the official filing. Readers are encouraged to verify any specifics relevant to their circumstances with the SEC or a qualified financial or legal professional.
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