Under the agreement (see attachment for a synopsis), the CFTC would be the primary regulator of futures markets and futures commission merchants (FCMs) and the SEC would be the primary regulator of securities markets and broker-dealers. In order to trade security futures, futures exchanges and FCMs will be required to file notice registration with the SEC, and securities exchanges and broker-dealers will be required to file notice registration with the CFTC. Only the core provisions of each agency's statutes will apply to notice registrants.

Commenting on this agreement, CFTC Chairman William Rainer noted:

"The Commission is very pleased with the result of these discussions. Chairman Levitt and the SEC staff, and our own CFTC staff, deserve great credit for their work on this landmark agreement. I also congratulate Treasury Secretary Summers for his vital role in facilitating the discussions leading to today's outcome. This proposal creates a strong regulatory framework that encompasses the essential protections expected by market participants. If enacted, this joint approach to regulation would permit these products to trade in the United States in both futures and securities markets."

"Along with the other members of the President's Working Group on Financial Markets, I urge the Congress to pass Commodity Exchange Act re-authorization legislation consistent with the unanimous recommendations contained in the Working Group's report on OTC derivatives. I look forward to working with Congress toward that end."