U.S. securities and derivatives regulators issued joint orders Friday, clarifying their jurisdiction over security-based futures products.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission issued two joint orders related to security-based futures contracts to clarify their respective jurisdictions, and to allow additional products to underlie these sorts of futures.

The first joint order excludes certain foreign and domestic volatility indexes that are based on broad-based indexes from the definition of “narrow-based security index”. As a result, futures on indexes that meet the criteria are treated as “broad-based” indexes, and are therefore subject to the exclusive jurisdiction of the CFTC. Options on such volatility indexes are subject to the federal securities laws and the jurisdiction of the SEC.

The second order allows futures products to be based on any security that is eligible to underlie an exchange-listed option, including certain unregistered debt securities.