Security Futures, Product Regulation

Overview

The term "Security future" and "security futures product," as those terms are defined in the SEA (Section 3(a)(55) and Section 3(a)(56) and the CEA Section 1a(44) and Section 1a(45), are subject to regulation by both the SEC under the securities laws and by the CFTC under the Commodity Exchange Act (See CEA Section 2(a)(1)(D)). Just as the product is dual-regulated, so are the firms that act as intermediaries in the products and the market son which the products trade. However, fully-SEC-regulated national securities exchanges and fully-CFTC-regulated derivatives contract markets that trade in security futures products are subject only to a "light" scheme of regulation under the other regime.

This page is focused on the regulation of "Security Futures Products," i.e., those instruments that are dually regulated by the SEC and the CFTC. A separate page deals with jurisdiction over such products, i.e., which instruments are subject to such dual regulation.

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SEA and SEA Rules

CEA and CFTC Rules