Exemption of Debt Obligations Issued by the European Union Under the Securities Exchange Act of 1934 for Purposes of Trading Futures Contracts on Those Securities

Securities and Exchange Commission

The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing an amendment to designate debt obligations issued by the European Union as "exempted securities" for the purposes of marketing and trading futures contracts on those securities in the United States or to U.S. persons. The amendment is designed to permit futures trading on debt obligations issued by the European Union to be regulated as futures on "exempted securities," subject to the Commodity Exchange Act. The proposal is intended to increase U.S. persons' access to the market for these products, which may improve opportunities for hedging; lower transaction costs; contribute to greater market depth; reduce operational friction; and increase competition.