CME Gets OK to Settle Big Futures at Closing Prices
Published Date: 7/15/2026
Notice
Summary
The SEC gave the Chicago Mercantile Exchange (CME) a green light to settle certain cash-settled security futures using the closing prices of big, popular stocks instead of the usual opening prices. This change affects futures tied to huge companies worth $100 billion or more and aims to make trading smoother and fairer. The new rules kick in soon, helping traders and investors handle these big-money deals with more confidence.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
SEC allows closing-price settlement
You (as an investor or trader) can trade certain cash-settled security futures on CME that will settle at the underlying stock's official closing price instead of the opening price. The SEC conditionally exempted CME to permit P.M. settlement for these products under the terms of this order.
Products limited to very large, liquid stocks
You can only find these P.M.-settled cash-settled futures on underlying common stocks that meet strict size and liquidity tests: at least 20 million shares in estimated deliverable supply, an initial market capitalization of $100 billion or greater, and a minimum ADVT of $450 million over the prior six months. To remain listed a security must keep at least $50 billion market cap and an ADVT of $200 million over the prior quarter (special $1 billion ADVT thresholds apply for new listings with shorter history).
Contracts limited to near-term expirations
You will only be able to trade these security futures with relatively short lifetimes: each contract will be listed with no more than 9 months to expiration (CME's listing schedule is limited to the nearest three quarters). This limits how far into the future you can buy or sell these specific contracts.
Public data disclosure and 18‑month study
CME must publish a set of detailed data in machine-readable CSV form for 18 months and deliver an 18-month study to the SEC within 18 months of the first listing. The data includes daily aggregate long/short positions by participant type, certain price series around settlement Fridays (including 3:30–3:45 p.m. and 3:45–4:00 p.m.), month-end positions and volumes, and price changes between settlement Friday close and next trading-day open.
Initial position limits set at 200,000 contracts
CME intends to set initial speculative position limits of 200,000 contracts for security futures listed under this exemption, and position limits will apply (including during the last three trading days of an expiring contract month). These limits are intended to reduce manipulation risks around settlement.
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Key Dates
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