The Regulation of Equity Index Futures
Transactions: The Tennessee Journal of Business Law, Forthcoming
107 Pages Posted: 11 Sep 2020 Last revised: 5 Oct 2020
Date Written: 2020
Equity index futures are one of the most actively traded derivative instruments in financial markets around the world. Advancements in trading and clearing technologies transformed the marketplace over the past two decades. Regulation drastically changed to keep pace with the market’s development. New rules have been implemented covering trading activities, risk management, market surveillance, and customer protection. Legal literature on the regulation of this important financial instrument is surprisingly antiquated. Existing papers were written decades ago and do not reflect the true metes and bounds of today’s regulatory landscape. This paper fills the void. It provides a comprehensive discussion of the contemporary regulatory framework and highlights unresolved issues that remain a challenge to regulators in maintaining an orderly trading environment. The paper lays the foundation for future academic research toward regulatory improvements, and guides practitioners in their provision of legal services in this field.
Keywords: Equity Index Futures, futures contracts, S&P 500, Dow Jones Industrial Average, regulations, financial regulation, trading, risk management, internal control, investor protection, Commodity Futures Trading Commission (CFTC), National Futures Association (NFA)
JEL Classification: K22
Suggested Citation: Suggested Citation