The new rules require nationwide securities exchanges, designated contract markets, registered DTEFs, and overseas boards of commerce to collect information to ascertain the market capitalization and dollar value of ADTV for element securities of an index with respect to every day, in sure circumstances considering knowledge for the previous 6 full calendar months. Within the Proposing Release, the SEC estimated that any additional prices of retaining and storing the collected data mentioned above can be nominal as a result of national securities exchanges, together with notice-registered nationwide securities exchanges which were designated as contract markets by, or registered as DTEFs with, the CFTC, are at the moment required to have recordkeeping programs in place.159 The SEC received no direct comments on the costs of data retention and storage. The trading of futures contracts on broad-based safety indexes will be beneath the only real jurisdiction of the CFTC and could also be traded solely on designated contract markets, and registered DTEFs. The brand new rule supplies a restricted exclusion from the definition of "slim-based mostly security index" for an index underlying a futures contract that has traded for less than 30 days, as long because the index meets sure specified criteria.
New Rule 3a55-2 beneath the Exchange Act excludes from the definition of slim-based mostly safety index those safety indexes on which futures contracts have traded on a chosen contract market, a registered DTEF, or foreign board of commerce for fewer than 30 days and become slim-based mostly, offered that they meet sure criteria. The calculations required under the new rules for market capitalization and dollar value of ADTV may require additional data storage.173 A national securities exchange, designated contract market, or registered DTEF will need to contemplate how you can retailer the information-whether or not to maintain arduous copies or digital copies of all of the computations. The overall burden in complying with Rule 17a-1 for each nationwide securities exchange, including discover registered nationwide securities exchanges, under new Rule 3a55-1 is subsequently estimated to be eleven hours. https://garner-montoya.federatedjournals.com/ftx-is-it-a-scam-1699591882 for Rule 17a-1, as of July 20, 1998, is 50 hours per 12 months for each exchange.160 In the Proposing Release, the SEC estimated that it could take each of the 11 nationwide securities exchanges, together with notice-registered nationwide securities exchanges, anticipated to trade futures contracts on security indexes one hour annually to retain any paperwork made or obtained by it in figuring out whether or not an index is a slender-based mostly safety index.
2. Burden Hours National securities exchanges, together with discover-registered nationwide securities exchanges, that commerce futures contacts on safety indexes will probably be required to comply with the recordkeeping requirements underneath Rule 17a-1. National securities exchanges, together with discover-registered nationwide securities exchanges, will likely be required to retain and retailer any paperwork associated to determinations made utilizing the definitions in Exchange Act Rule 3a55-1 for at least five years, the first two years in an simply accessible place. These modifications to the rules change somewhat the methodology used to find out whether a safety index is narrow-based or broad-primarily based but don't, in any method, alter the recordkeeping burden associated with the preservation of the records of these calculations, i.e., the collection of information required pursuant to Rule 17a-1 underneath the Exchange Act.152 Any collection of information pursuant to the new guidelines is necessary and will have to be retained by the nationwide securities exchanges, together with nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("notice-registered nationwide securities exchanges"), for no less than 5 years; for the primary two years, the information should be saved in an simply accessible place, as required below Exchange Act Rule 17a-1. A. The Use and Disclosure of the data Collected The data collected to adjust to the strategies to determine market capitalization and greenback worth of ADTV that are set forth in the ultimate rules is required by the CFMA.
Rule 3a55-1 under the Exchange Act specifies the strategy to determine market capitalization and dollar value of ADTV with respect to the definition of slender-primarily based safety index.156 Thus, the final rule supplies the strategies by which a market buying and selling a futures contract on a security index must decide the market capitalization and dollar value of ADTV to ascertain whether or not a security index on which it proposes to trade, or is buying and selling, a futures contract is narrow-based mostly, and thus is topic to the joint jurisdiction of the CFTC and the SEC. Under https://rentry.co/wtd4au of narrow-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 particular day, the "preceding 6 full calendar months" will mean the time period starting on the identical calendar date 6 months earlier than and ending on the day previous to that day.