In a conference speech delivered in his official capacity, the U.S. Securities and Exchange Commission's Director of the Division of Trading and Markets outlined the division's priorities under Chairman Paul Atkins, while noting that the remarks did not necessarily reflect the views of the Commission or its staff. The work program centers on a framework for listing and trading tokenized securities, closer alignment with the Commodity Futures Trading Commission, support for a move to 23-by-5 equity market trading by the end of 2026, and recommendations to modernize legacy market structure rules including Regulation NMS and the Consolidated Audit Trail. On SEC-CFTC harmonization, he said the two agencies are reviewing novel product proposals in parallel and identifying rulebook areas where clarity or compatibility is lacking. He cited the SEC's February notice of CME's application for an exemption to trade single-stock futures with cash P.M. settlement and the SEC's May approval of Nasdaq PHLX's cash-settled Bitcoin index options. Staff have identified swap and security-based swap data reporting, portfolio margining, and product definitions as initial areas for public input. He also said the legal status of perpetual futures remains unresolved, noting the Commodity Futures Trading Commission's recent approval of Kalshi's Bitcoin perpetual futures contract as a futures product and the prospect of case-by-case review for other underlyings. The director said substantial industry comment is expected in coming months and argued that harmonization will require patience, while keeping clear limits around gambling-like activity and excessive leverage for unsophisticated investors.
U.S. Securities & Exchange Commission2026-06-04
U.S. Securities and Exchange Commission Trading and Markets Director outlines tokenized securities plans and CFTC harmonization priorities
The U.S. Securities and Exchange Commission’s Director of the Division of Trading and Markets outlined priorities under Chairman Paul Atkins: creating a framework for listing and trading tokenized securities, closer alignment with the Commodity Futures Trading Commission, supporting a move to 23-by-5 equity market trading by end-2026, and modernizing Regulation NMS and the Consolidated Audit Trail. He said the SEC and CFTC are reviewing novel products in parallel, seeking public input on swap and security-based swap data reporting, portfolio margining and product definitions, and highlighted unresolved questions on the legal status of perpetual futures, stressing the need for harmonization while limiting gambling-like activity and excessive leverage.