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The Free Financial Advisor
The Free Financial Advisor
Business
Amanda Blankenship

SEC Proposes Opening U.S. Futures Trading to European Union Debt

European Union debt futures
The SEC has proposed adding European Union debt obligations to a rule that could allow futures based on those securities to be marketed and traded in the United States under CFTC oversight. The underlying EU debt securities would remain subject to federal securities laws. motioncenter/Shutterstock

The Securities and Exchange Commission is proposing a regulatory change that could make it easier for U.S. market participants to trade futures contracts tied to debt issued by the European Union.

The SEC proposed an amendment to Exchange Act Rule 3a12-8 on August 28, with the proposal published in the Federal Register on September 2. If finalized, the change would designate European Union debt obligations as “exempted securities” for the limited purpose of marketing and trading futures contracts on those securities in the United States or to U.S. persons.

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