These guidelines present strategies of calculation and guidance for national securities exchanges, designated contract markets, registered DTEFs, and overseas boards of commerce in determining whether or not a safety index is narrow-primarily based under the Exchange Act. Securities Markets Coalition ("Coalition"),139 raised issues over sure tax implications that these markets consider consequence from the definition of slim-based mostly safety index and the rules as proposed. As well as, the SEC believes that it isn't empowered to undertake the equal of CEA Rule 41.14 under the Exchange Act, which gives relief for futures on indexes that turn out to be broad-primarily based, because the SEC has no jurisdiction over broad-based mostly security index futures. https://www.yasasiikuruma.com/contents/%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4%ec%9d%98-%ed%8a%b9%eb%b3%84%ed%95%9c-%ec%a0%90%ec%9d%80-%eb%ac%b4%ec%97%87%ec%9d%b8%ea%b0%80%ec%9a%94/ received several comments concerning potential costs that is perhaps incurred unless completely different standards for the definition of slender-primarily based security index are adopted to accommodate indexes comprised of foreign securities.170 The SEC notes that the Commissions have adopted Rules 41.Thirteen under the CEA and 3a55-3 under the Exchange Act, which set up that when a futures contract on a security index is traded on or subject to the foundations of a overseas board of commerce, that index will not be considered a slender-based safety index if it wouldn't be a slender-based mostly safety index if a futures contract on such index were traded on a chosen contract market or registered DTEF.
Two commenters raised points regarding the treatment of futures on Exchange Traded Funds.140 The Commissions believe that these points fall outside the scope of the current rulemaking and is not going to tackle them in this context. The current burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per year for every exchange.160 Within the Proposing Release, the SEC estimated that it will take every of the 11 nationwide securities exchanges, together with discover-registered national securities exchanges, anticipated to trade futures contracts on safety indexes one hour yearly to retain any paperwork made or received by it in figuring out whether an index is a slender-based mostly security index. As to the dedication of which indexes qualify as broad-based mostly and which are treated as slim-based mostly, the tax laws incorporate by reference the definition of slender-based security index in the Exchange Act. 2. Burden Hours National securities exchanges, including notice-registered nationwide securities exchanges, that trade futures contacts on safety indexes can be required to comply with the recordkeeping requirements beneath Rule 17a-1. National securities exchanges, including discover-registered nationwide securities exchanges, shall be required to retain and retailer any documents related to determinations made using the definitions in Exchange Act Rule 3a55-1 for a minimum of five years, the primary two years in an easily accessible place.
The CFMA requires that the determinations as to market capitalization and dollar value of ADTV, and thus the standing of a securities index as slim-based mostly or broad-primarily based, be made, whereas Exchange Act Rule 17a-1 merely requires that such determinations be retained. Accordingly, to adjust to these recordkeeping necessities, a nationwide securities exchange, together with a discover-registered nationwide securities exchange, that lists or trades futures contracts on slender-primarily based security indexes will be required to preserve records of any calculations used to find out whether or not an index is slender-primarily based.158 B. Total Annual Reporting and Recordkeeping Burden 1. Capital Costs Rule 17a-1 underneath the Exchange Act requires a nationwide securities exchange, including any notice-registered national securities exchange, that trades futures contracts on a slim-based mostly safety index to keep on file for a interval of no less than five years, the first two years in an easily accessible place, all records concerning their determinations that such indexes had been slim-based. This commenter famous that a single compiler of the lists will lead to consistent remedy of futures on safety indexes.
The CFMA lifted the ban on the trading of futures on single securities and on slim-primarily based security indexes and established a framework for the joint regulation of those products by the CFTC and the SEC. The CFTC believes good trigger exists for the foundations to turn into efficient on August 21, 2001, in order that eligible contract members might start trading the brand new products as contemplated by the CFMA. The CFMA provides that principal-to-principal transactions between certain eligible contract contributors in security futures merchandise may start on August 21, 2001, or such date that a futures affiliation registered below Section 17 of the CEA meets the necessities in Section 15A(k)(2) of the Exchange Act.143 The CFMA lifted the ban on, and permits the buying and selling of, futures contracts on single securities and on narrow-primarily based safety indexes. The SEC proposed these rules on May 17, 2001. The initial comment period for the foundations expired on June 18, 2001. The remark interval, however, was prolonged by the CFTC and the SEC until July 11, 2001. After reviewing and contemplating the feedback acquired, the SEC is adopting the foundations, which give the strategies for markets to find out whether or not a safety index is narrow-based or broad-based as required by the Exchange Act, as amended by the CFMA.