CFTC/SEC Agreement to Reform Shad-Johnson Accord

The agreement provides for joint jurisdiction between the CFTC and the SEC over single stock futures and narrow-based stock indices, both defined as security futures. Broad-based indices, as defined below, will remain under the CFTC’s jurisdiction.

Broad-Based Stock Indices

Joint Jurisdiction over Security Futures

Mandatory Linked Clearing Facilities

  1. Two years after trading commences in any security future; or
  2. The date on which the market is deemed to be viable (180 days after the first month in which average aggregate comparable share volume of single stock futures equals or exceeds 10% of average aggregate comparable share volume of options on equity securities).

"Section 31" Transaction Fees

Margins on Security Futures

  1. margin requirements for comparable option contracts, exclusive of premium; or
  2. the amount required by the applicable exchange using its risk-based portfolio margining system.

Large Trader Reporting

Tax Treatment

Dual Trading Restriction