The U.S. Securities and Exchange Commission (SEC) is proposing a change that would add European Union debt obligations to its list of exempted securities for certain futures activities.
Announced on 28 August, 2026, the move aims to close a long standing gap between EU wide debt and debt issued by individual EU countries.
Core Changes Under the Rule 3a12-8 Amendment
Under the proposed amendment to Exchange Act Rule 3a12-8, EU debt would receive the same treatment as debt issued by individual EU member states. However, the change is narrowly focused and would apply only to futures linked to EU debt.
The proposed exemption would apply only to the marketing and trading of futures contracts linked to EU debt. Direct sales and offerings of the actual EU debt would remain subject to U.S. federal securities laws.
SEC Chairman Paul S. Atkins said the current rule creates an unnecessary difference between EU member states and the European Union itself.
“For too long, gaps like this one—where the debt of several EU member states was covered, but debt of the European Union itself was not—have created exactly the kind of inconsistency that breeds confusion rather than confidence in the markets.”
At the same time, the SEC stressed that the proposal would not change the rest of Rule 3a12-8.
CFTC Would Get Exclusive Oversight
The proposed change would also make it clearer who oversees futures linked to EU debt. By adding EU debt obligations to Rule 3a12-8, futures contracts linked to them would come under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC).
Thus, Paul Atkins said the change would help fix the confusion created by covering debt from individual EU countries while leaving EU-issued debt outside the rule.
He described the move as “SEC-CFTC harmonization in practice,” aimed at closing the gap while keeping investor protections in place.
The proposal will be published in the Federal Register, after which the public comment period will begin.
Market participants, financial firms, and other interested groups will have 60 days to submit their views before the SEC considers finalizing the amendment.
The proposal does not immediately change the rules. It must go through the public comment process before any final decision is made.
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