SEC proposes adding EU debt to Rule 3a12-8 for futures trading

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

Currently, the rule covers debt from various EU member states, but excludes debt issued directly by the European Union. SEC Chairman Paul S. Atkins stated that this gap creates inconsistencies that “breed confusion rather than confidence in the markets.”

Under the proposal, futures contracts tied to EU debt obligations would fall under the oversight of the Commodity Futures Trading Commission (CFTC), aligning them with the treatment of other foreign government debt futures. The amendment is narrowly focused on futures; the underlying EU debt securities would remain subject to U.S. federal securities laws.