In December 2000, Congress established a framework for regulation by the CFTC and Securities and Exchange Commission (SEC) of the trading of futures on single securities and futures on narrow-based security indexes (collectively, these products are called security futures products or SFPs). Congress added a definition of “narrow-based security index” to distinguish between futures on narrow-based security indexes, which are jointly regulated by the CFTC and SEC, and futures on broad-based security indexes, which are under the exclusive jurisdiction of the CFTC. Security futures products have features of both securities and futures.

Background Information
Products and Product Listing
Exchanges
Intermediaries
Indexes of Foreign Stocks and Offerings by Foreign Markets
Related Links

• Background Information
  • Definitions and Overview of the Regulatory Landscape, Criteria for Broad-Based Indexes
  • Other Securities Eligible to Underlie SFPs: American Depositary Receipts (ADRs), Exchange-Traded Funds (ETFs), Trust-Issued Receipts (TIRs), Closed-End Funds
  • Commodity Exchange Act Provisions
  • CFTC Regulations and Requirements
  • Federal Register Releases
  • Disclosure Statement of Risks; NFA Interpretive Notices and Other NFA Materials
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• Products and Product Listing
  • CFTC Requirements and Listing Procedures
  • SEC Staff Legal Bulletin No. 15 (Listing Standards for SFPs)
  • Speculative Limits
    • General Backgrounder on Speculative Position Limits
    • Required Speculative Position Limit Levels for SFPs
  • Trading Halt Provisions
  • Requirements Related to Cash Settlement
  • Margin Requirements: Summary; Federal Register Release
  • SFPs Filed With the CFTC Under Certification or Approval Procedures
    • Futures on Single Stocks (including ADRs)
    • Futures on Narrow-Based Indexes
    • Futures on Other Eligible Securities: ETFs, TIRs, Closed-End Funds
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• Exchanges
  • Entities Eligible to List SFPs for Trading
    • DCMs and DTEFs That Are Notice Registered with the SEC as Securities Exchanges
    • Securities Exchanges That Are Notice Designated with the CFTC as Contract Markets
  • Procedures for Notice Registration of a Designated Contract Market as a Securities Exchange (SEC Federal Register Release; SEC Registration Form 1-N)
  • Procedures for Notice Designation of a Securities Exchange as a Designated Contract Market (Regulations; CFTC Federal Register Release)
  • Dual Trading Restrictions (Regulations; CFTC Federal Register release)
  • CFTC Large Trader Reporting Requirements, Intermarket Surveillance Group Circular
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• Intermediaries
  • Procedures for Notice Registration of a Broker Dealer as a Futures Commission Merchant or Introducing Broker (CFTC Regulations; CFTC Federal Register Release; NFA Website)
  • Procedures for Notice Registration of a Futures Commission Merchant as a Broker Dealer (SEC Federal Register Release; NFA Website)
  • Applicability of CFTC and SEC Customer Protection, Recordkeeping, Reporting, and Bankruptcy Rules and the Securities Investor Protection Act of 1970 to Accounts Holding Security Futures Products (Joint CFTC/SEC Federal Register Release)
  • Application Procedures for Exemptive Orders for Notice-Registered FCMs and IBs
  • NFA Rules Regarding Security Futures Products
  • Margin Requirements: Summary; Federal Register Release
  • Speculative Limits and Large Trader Reporting
    • General Backgrounder on Speculative Position Limits
    • SFP Speculative Position Limit Levels
    • Backgrounder on Large Trader Reporting
    • Intermarket Surveillance Group Notice Regarding Large Trader Reporting Requirements
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• Indexes of Foreign Stocks and Offerings by Foreign Markets
  • Indexes Underlying Contracts of Foreign Boards of Trade Authorized by the CFTC Pre-CFMA; List of Indexes; Joint CFTC/SEC Order
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• Related Links:
  • SEC Home Page
  • Security Futures: An Introduction to Their Uses and Risks (published by NFA)
  • Security Futures Products Regulatory Requirements Reference Guide (published by NFA)
  • NFA Home Page
  • NASD SFP page
  • The Institute for Financial Markets (IFM) SFP Page