Security Futures Products

Security futures products (SFPs) are futures whose underlying instrument is either a single security or a narrow-based security index.  The Commodity Futures Modernization Act of 2000 authorized futures contracts on single securities and narrow-based indices (security futures products).  SFPs are unique in that unlike other futures contracts, SFPs are considered both a futures and securities contract and are regulated as such. 

The table below contains links to information and other useful resources SFPs and the rules that govern firms that engage in SFP trading for their customers.

General Information Resource Publications SFP Reference Guide Investor Guide Member Guide Risk Disclosure Statement Rules Interpretive Notices Compliance Rule 2-7: Branch Office Managers and Designated Security Futures Principals Compliance Rule 2-8: Discretionary Accounts Compliance Rule 2-29: Communications with the Public and Promotional Material Compliance Rule 2-30: Customer Information and Risk Disclosure Compliance Rule 2-37: Security Futures Products Obligations to Customers and Other Market Participants NFA Compliance Rule 2-9: Special Supervisory Requirements for Members Registered as Broker-Dealers Under Section 15(b)(11) of the Securities Exchange Act of 1934 NFA Compliance Rule 2-29: Use of Past or Projected Performance; Disclosing Conflicts of Interest for Security Futures Products NFA Compliance Rule 2-4: Broker-Dealer Registration Requirements for Security Futures Products NFA Compliance Rule 2-37: Fair Commissions NFA Compliance Rule 2-4: The Best Execution Obligation of NFA Members Registered as Broker-Dealers Under Section 15(b)(11) of the Securities Exchange Act of 1934 NFA Compliance Rules 2-7 and 2-24 and Registration Rule 401: Proficiency Requirements for Security Futures Products NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts Forms Proficiency Training Notice Form 7-R Notice Form BD-N Proficiency Training for Futures Registrants Proficiency Training for Non-Registrants Content Outline Related Links CFTC Security Futures Products Web Page FINRA Security Futures Products Web Page SEC Interpretive Guidance SEC Final Rules