Federal Register #SR-BTNL-2026-001

SEC Review of Rule Changes for Security Futures Products by Bitnomial and Coinbase Derivatives

This notice from the Securities and Exchange Commission (SEC) concerns proposed rule changes by Bitnomial Exchange, LLC and Coinbase Derivatives, LLC for listing cash-settled security futures products (SFPs) on individual equity securities. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - Bitnomial Exchange, LLC - Coinbase Derivatives, LLC - Products/Services Requested: - Cash-settled security futures products (SFPs) on individual equity securities - Includes perpetual single-stock futures - Standard contract specifications: 100 shares per contract, minimum tick size $0.01/share, position limit 200,000 contracts - Unique or Notable Requirements: - Customer margin requirement: minimum 15.25% - Trading hours: 24 hours/day, 5 days/week (24/5) - Surveillance and conflict-of-interest safeguards for affiliated intermediaries - Nondiscriminatory access and investor protection emphasized - Rule changes require approval from both SEC and Commodity Futures Trading Commission (CFTC) - Trading will commence only after all regulatory approvals and launch requirements are met

Description

Bitnomial Exchange, LLC has filed a proposed rule change with the Securities and Exchange Commission (SEC) concerning security futures product listing standards, customer margin, and related rules. The proposal establishes generic listing standards and requirements for cash-settled security futures products on individual equity securities, including contract specifications, market hours, settlement, and customer margin. The rule change aims to govern eligible underlying securities, permitted contract types, funding, pricing, settlement, and customer margin. The proposal also includes procedures for funding and settlement and will be submitted concurrently for approval by the Commodity Futures Trading Commission (CFTC).

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