United States: Commodities/Derivatives/Stock Exchanges

CME Group is set to reintroduce security futures to U.S. markets after a four-year absence, launching cash-settled futures on 55 individual equity names. This comprehensive analysis examines the intricate dual regulatory framework governing these hybrid instruments, which are simultaneously classified as both securities and futures, and explores the complex compliance obligations facing broker-dealer/futures commission merchant intermediaries navigating overlapping SEC and CFTC jurisdiction.

The CFTC has adopted significant amendments to its margin requirements for uncleared swaps, fundamentally changing how seeded funds are treated and expanding eligible collateral options. These changes eliminate longstanding barriers that forced fund sponsors to structure vehicles offshore and restricted the use of money market fund shares as collateral. The Final Rule brings U.S. regulations into closer alignment with international standards while addressing practical challenges faced by market participants

Last Spring, we provided an overview of the Texas Stock Exchange. One year later, the Exchange has clearly moved from concept to reality, following its June 27, 2026 Final Confidence Test and the launch of phased trading in July. The key question now is whether the Exchange can scale smoothly, attract listings, and build meaningful liquidity as it expands through 2026 and into 2027.

Looking ahead to her November departure from the SEC, Commissioner Hester Peirce delivered what might be described as a farewell address to the U.S. Chamber of Commerce Capital Markets Summit.

Katten's Financial Markets and Funds Quick Take delivers monthly insights on regulatory developments affecting financial markets, covering SEC enforcement policy changes, CFTC framework updates, prediction market regulations, cryptocurrency task force initiatives, and Supreme Court decisions impacting investment companies and arbitration proceedings. This comprehensive roundup examines how regulatory agencies are adapting to emerging technologies while reshaping enforcement approaches and market oversight.

The CFTC's investigation into Polymarket signals a regulatory shift beyond jurisdictional questions to focus on operational controls, marketing practices, and consumer protection in prediction markets. As regulators scrutinize promotional content, simulated trading, and U.S. access restrictions, platforms face heightened compliance expectations around affiliate supervision, influencer disclosures, and the accuracy of customer-facing claims.

Depending on the type of product (debt security or derivative), determining whether there is a good trading day or whether a market disruption event has occurred is important.

Gary Gensler's recent amicus brief in the Kalshi litigation has sparked unexpected attention across legal circles, with lawyers who typically oppose his regulatory approach finding themselves sharing excerpts from the filing. The brief challenges whether Congress intended Dodd-Frank to preempt state sports betting laws, using memorable phrases and firsthand institutional knowledge to frame a complex debate about prediction markets, federal commodities law, and state gambling authority.

On June 10, the CFTC (by the vote of its sole Commissioner) issued a notice of proposed rulemaking that would establish a framework for determining when event contracts involving gaming, war, terrorism, assassination, or unlawful activity are contrary to the public interest under the Commodity Exchange Act (CEA).