Release: #4643-02
For Release: May 20, 2002

CFTC and SEC Adopt Final Rules Related to Cash Settlement Procedures and Trading Halts for Security Futures Products

Washington, D.C. –- The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) today announced that they approved final rules that set forth certain requirements relating to the trading of security futures products. These rules implement provisions of the Commodity Futures Modernization Act of 2000 (CFMA), which lifted the 19-year ban on the trading of single-stock and narrow-based stock index futures in this country.

Specifically, the final rules establish requirements related to determining the final settlement price of cash-settled security futures products and to the coordination of trading halts in security futures products with trading halts in securities underlying such futures. In addition, the release provides guidance regarding how exchanges may meet the CFMA’s requirement that exchanges and associations have in place procedures to coordinate surveillance among markets that trade security futures products, markets that trade underlying securities, and any markets on which related securities trade.

The final rules are effective 30 days after publication in the Federal Register. Copies of the rules can be obtained by contacting the CFTC’s Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100, or by accessing the CFTC’s website or the SEC’s website at and, respectively.