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Cash Settlement and Regulatory Halt Requirements for Security Futures Products

SEC · final-rule · Published 2002-05-24 · Effective 2002-06-24 · 67 FR 36740

Document

Document number
02-12979
Federal Register citation
67 FR 36740
CFR reference
17 CFR 41
Type
Rule
Action
Joint final rule.
Category
final-rule
Agency
US Securities and Exchange Commission
Publication date
2002-05-24
Effective date
2002-06-24
Docket
Release No. 34-45956

Abstract

The Commodity Futures Trading Commission ("CFTC") and the Securities and Exchange Commission ("SEC") (collectively "Commissions") are adopting a new rule generally to require that the final settlement price for each cash-settled security futures product fairly reflect the opening price of the underlying security or securities, and that trading in any security futures product halt when a regulatory halt is instituted with respect to a security or securities underlying the security futures product by the national securities exchange or national securities association listing the security. The rule adopted today would set forth more specifically how the exchange's or association's rules can satisfy provisions added to the Commodity Exchange Act ("CEA") and the Securities Exchange Act of 1934 ("Exchange Act") by the Commodity Futures Modernization Act of 2000 ("CFMA"). The Commissions are also issuing an interpretation of the statutory requirement under the CEA and the Exchange Act that procedures be put in place for coordinated surveillance among the markets trading security futures products and any market trading any security underlying the security futures products or any related security.

Source

Authoritative
Federal Register document
Machine
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