The order on SPIKES futures, adopted by the SEC, was canceled by the judges

The Colombian Court of Appeal decided to neutralize the order of the SEC, indicating that the SPIKES index tools should be considered as futures. At the same time, the latter were recognized as securities.

What is the SPIKES index and the reasons for the cancellation of the order

The verdict on the cancellation was taken by a panel of judges. It consisted of 3 specialists. They issued a verdict that the regulator's order was unjustified and arbitrary. 

The decision states that the agency did not provide adequate reasoning. Also, he did not consider the possibility of confusion due to the exceptional measures provided.

The decision concerned an order that was issued back in 2020. It removed the SPIKES indicator, which displays the volatility of stocks, from the terminology of securities futures.

In the future, the regulator removed the increased tax fees and other regulatory requirements that relate to securities in relation to SPIKES instruments. The agency took this decision to strengthen competition among volatility indicators.

The court's decision established that SPIKES are futures for securities. Therefore, traders are given 3 months to close orders.

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