SEC Proposes Amendment to Rule 3a12-8 for EU Debt Securities

The U.S. Securities and Exchange Commission (SEC) has proposed an amendment to Rule 3a12-8, which would add European Union debt obligations to the list of foreign government securities exempted for futures marketing and trading.

This change is aimed at harmonizing EU debt futures with other foreign government debt futures already covered under the rule. According to SEC Chairman Paul S. Atkins, the current framework has created inconsistencies that breed confusion in the markets.

The exemption would apply only to futures marketing and trading, while federal securities laws would still govern the underlying European Union debt securities. Under the proposal, the Commodity Futures Trading Commission (CFTC) would oversee futures contracts tied to European Union debt obligations.