SEC moves to exempt EU debt futures under US rules

The U.S. Securities and Exchange Commission has proposed a rule amendment that would exempt European Union debt from futures trading and open a 60-day public comment period. Summary The SEC wants to add EU debt obligations to the exemption under Rule 3a12-8. The exemption would apply only to the marketing and trading of qualifying futures contracts. EU debt futures would fall under the CFTC’s exclusive jurisdiction if the amendment takes effect. Federal securities laws would continue to govern offerings of the underlying EU debt. SEC proposal would cover EU debt futures The SEC, in an Aug. 28 proposal, said it wants to add debt issued by the European Union to the foreign government securities covered by Rule 3a12-8 of the Securities Exchange Act of 1934. Under the amendment, qualifying futures contracts tied to EU debt could be offered, sold or confirmed in the United States or to U.S. persons under the same regulatory framework used for futures on debt issued by designated foreign governments. The Commodity Futures Trading Commission would have exclusive jurisdiction over the contracts. The change would not give EU bonds a general exemption from U.S. securities laws. According to ...