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CFTC Plans To Increase Liquidity In SFPs

Futures regulator the Commodity Futures Trading Commisssion approved a proposal to update a rule impacting exchanges that list security futures products (SFPs). The proposal has the potential to provide greater liquidity in SFP trading, which would facilitate risk management for entities using SFPs. The proposed rule would update an outdated security futures rule that has not kept pace with position limits on security options, which are under the jurisdiction of the Securities and Exchange Commission. The proposed updates would provide exchanges that list SFPs with greater discretion in setting limit levels, allowing the exchanges to provide a more effective risk management tool. This is the...