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Purpose

The purpose of this paper is to provide professionals in the global financial services industry with a useful summary of the proposed rules set out in April 2006 by two US regulatory agencies – the Commodity Futures Trading Commission and the Securities and Exchange Commission.

Design/methodology/approach

The paper begins with background information regarding this regulatory structure and concludes with an overview of the proposed rules.

Findings

The issuance of these proposed rules is part of the continuing evolution of the regulatory structure in the US related to securities‐based futures contracts and is, therefore, best understood within that broader context.

Originality/value

The discussion of the proposed rules situates the continuing evolution of the securities‐based futures contracts in the broad context of the US regulatory structure.

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