CME to Launch 55 Single-Stock Futures Under Dual SEC-CFTC Oversight
Updated
Updated · The National Law Review · Jul 22
CME to Launch 55 Single-Stock Futures Under Dual SEC-CFTC Oversight
1 articles · Updated · The National Law Review · Jul 22
Summary
CME plans to list cash-settled futures on 55 individual stocks before month-end, marking the first security futures on a CME exchange since 2011.
The contracts would cover roughly 55% to 65% of the S&P 500 and Nasdaq-100 by weighting, reviving a U.S. market that has been dormant since OneChicago shut in September 2020.
Because security futures are legally both securities and futures, the products fall under joint SEC and CFTC regulation, with exchanges and intermediaries facing overlapping licensing, margin and supervisory rules.
Broker-dealer and futures commission merchant firms will need to sort out dual registration, account treatment and compliance systems, including the 15% minimum margin for unhedged positions and parallel FINRA-NFA obligations.
The launch tests whether a product long stifled by regulatory complexity and weak investor uptake can regain traction in U.S. markets.