The brand new rules require nationwide securities exchanges, designated contract markets, registered DTEFs, and foreign boards of trade to collect data to ascertain the market capitalization and greenback value of ADTV for component securities of an index with respect to every day, in certain cases taking into account data for the previous 6 full calendar months. Within the Proposing Release, the SEC estimated that any extra costs of retaining and storing the collected data discussed above could be nominal as a result of national securities exchanges, together with discover-registered national securities exchanges that have been designated as contract markets by, or registered as DTEFs with, the CFTC, are currently required to have recordkeeping programs in place.159 The SEC acquired no direct feedback on the prices of information retention and storage. The buying and selling of futures contracts on broad-based security indexes can be under the sole jurisdiction of the CFTC and may be traded solely on designated contract markets, and registered DTEFs. The new rule provides a limited exclusion from the definition of "slender-based safety index" for an index underlying a futures contract that has traded for lower than 30 days, as lengthy as the index meets sure specified criteria.
New Rule 3a55-2 underneath the Exchange Act excludes from the definition of slim-primarily based security index these safety indexes on which futures contracts have traded on a chosen contract market, a registered DTEF, or overseas board of trade for fewer than 30 days and turn into slender-based mostly, provided that they meet sure criteria. The calculations required beneath the new rules for market capitalization and dollar value of ADTV may require additional information storage.173 A national securities exchange, designated contract market, or registered DTEF will need to contemplate easy methods to store the data-whether or not to maintain hard copies or digital copies of all the computations. The total burden in complying with Rule 17a-1 for every nationwide securities exchange, including notice registered national securities exchanges, under new Rule 3a55-1 is due to this fact estimated to be eleven hours. https://ldamour.com/contents/%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4-%ed%8e%80%eb%94%a9-%ec%88%98%ec%88%98%eb%a3%8c%ec%97%90-%eb%8c%80%ed%95%b4-%ed%8e%80%eb%94%a9-%ec%88%98%ec%88%98%eb%a3%8c%eb%9e%80-%eb%ac%b4%ec%97%87%ec%9d%b4/ for Rule 17a-1, as of July 20, 1998, is 50 hours per yr for every exchange.160 In the Proposing Release, the SEC estimated that it could take every of the 11 national securities exchanges, including notice-registered national securities exchanges, expected to commerce futures contracts on safety indexes one hour yearly to retain any paperwork made or acquired by it in figuring out whether or not an index is a slender-primarily based security index.
2. Burden Hours National securities exchanges, together with notice-registered national securities exchanges, that trade futures contacts on security indexes will likely be required to comply with the recordkeeping necessities below Rule 17a-1. National securities exchanges, together with notice-registered nationwide securities exchanges, will probably be required to retain and retailer any documents associated to determinations made using the definitions in Exchange Act Rule 3a55-1 for at least five years, the first two years in an easily accessible place. These modifications to the principles change considerably the methodology used to find out whether or not a safety index is slim-primarily based or broad-based mostly however don't, in any method, alter the recordkeeping burden related to the preservation of the information of those calculations, i.e., the collection of knowledge required pursuant to Rule 17a-1 underneath the Exchange Act.152 Any collection of knowledge pursuant to the brand new guidelines is necessary and can should be retained by the national securities exchanges, together with nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("discover-registered nationwide securities exchanges"), for no less than five years; for the primary two years, the knowledge should be saved in an easily accessible place, as required underneath Exchange Act Rule 17a-1. A. The Use and Disclosure of the data Collected The knowledge collected to adjust to the strategies to find out market capitalization and greenback worth of ADTV which are set forth in the final guidelines is required by the CFMA.
Rule 3a55-1 beneath the Exchange Act specifies the strategy to determine market capitalization and dollar worth of ADTV with respect to the definition of slim-based safety index.156 Thus, the ultimate rule offers the methods by which a market trading a futures contract on a safety index must decide the market capitalization and dollar worth of ADTV to ascertain whether or not a security index on which it proposes to trade, or is trading, a futures contract is slim-based mostly, and thus is topic to the joint jurisdiction of the CFTC and the SEC. Under the statutory definition of slender-based mostly security index, the market capitalization and dollar worth of ADTV must be calculated "as of the previous 6 full calendar months." Rule 3a55-1 specifies a "rolling" 6 month period, i.e., with respect to a specific day, the "previous 6 full calendar months" will imply the period of time beginning on the same calendar date 6 months before and ending on the day previous to that day.