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CFTC proposes rule update for U.S. markets in security futures products

Jaclyn Jaeger | July 24, 2018

The Commodity Futures Trading Commission unanimously approved a proposal to update a rule impacting exchanges that list security futures products (SFPs). The proposal has the potential to provide greater liquidity in SFP trading, which would facilitate risk management for companies using SFPs.

The CFTC said the proposed rule would update an outdated security futures rule that has not kept pace with position limits on security options, which are under the jurisdiction of the Securities and Exchange Commission. The proposed updates would provide exchanges that list SFPs with greater discretion in setting limit levels, allowing the exchanges to provide a more effective risk management tool. This is the first update to the CFTC SFP position limits and position accountability requirements since they were originally issued in 2001.

Specifically, the proposed CFTC SFP rule will increase...

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