Try the latest episode of the Binance Podcast: Building Crypto Futures at Binance, the place Aaron shares his story of joining Binance and developing the Binance Futures platform. Summary: The Commodity Futures Trading Commission ("CFTC") and the Securities and Exchange Commission ("SEC") (collectively, "Commissions") by joint order under the Commodity Exchange Act ("CEA") and the Securities Exchange Act of 1934 ("Exchange Act") are excluding certain security indexes from the definition of "narrow-primarily based security index." Specifically, the Commissions are excluding from the definition of the time period "narrow-based mostly security index" sure indexes comprised of sequence of choices on broad-based safety indexes. Actually, Section 1a(25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act give the Commissions joint authority to make determinations with respect to security indexes that do not meet the specific statutory standards without regard to the varieties of securities that comprise the index. The Commissions consider that this situation limits the exclusion to indexes for which there's a liquid market on a nationwide securities exchange for the choices on the Underlying Broad-Based Security Index, which contributes to the Commissions' view that futures on such indexes should not be readily inclined to manipulation.
In addition, the Commissions consider that futures contracts on indexes that satisfy the situations of this exclusion should not be readily vulnerable to manipulation due to the composition, weighting, and liquidity of the securities in the Underlying Broad-Based Security Index and the liquidity that the choices comprising the index should have to qualify for the exclusion. Given the novelty of volatility indexes, the Commissions believe presently that it is appropriate to restrict the component securities to these index choices that are listed for buying and selling on a national securities exchange the place the Commissions know pricing data is current, accurate and publicly out there. For https://www.youtube.com/@Coin_universe in the history of the derivatives exchange, 24-hour trading quantity eclipsed $1 billion. For the reason that launch of Binance futures’ bitcoin derivatives market on September 24, daily buying and selling quantity had initially settled in the $250-$500 million range. Futures buying and selling is categorized as a type of derivatives market. The surge happened at this time when Bitcoin rose from $7,500 to a high of $8,800 in a frantic six hours of buying and selling.
Register today and create your account for the longer term advantages. Futures contracts on single securities and on slender-primarily based safety indexes (collectively, "safety futures") are jointly regulated by the CFTC and the SEC.1 To differentiate between security futures on slim-based safety indexes, which are jointly regulated by the Commissions, and futures contracts on broad-based mostly security indexes, which are below the exclusive jurisdiction of the CFTC, the CEA and the Exchange Act every contains an objective definition of the term "slender-based mostly safety index." A futures contract on an index that meets the definition of a slender-based mostly security index is a security future. https://www.cheapinternetsecuritysoftware.com/contents/%eb%b0%94%ec%9d%b4%eb%b9%84%ed%8a%b8-%ec%a0%9c%ed%9c%b4-%ed%94%84%eb%a1%9c%ea%b7%b8%eb%9e%a8%ea%b3%bc-%ec%88%98%ec%9d%b5-%ec%b0%bd%ec%b6%9c-%eb%b0%a9%eb%b2%95/ (25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act provide that, notwithstanding the initial criteria, an index will not be a narrow-based mostly security index if a contract of sale for future supply on the index is traded on or subject to the rules of a board of trade and meets such necessities as are jointly established by rule, regulation, or order by the Commissions.
The sixth condition offers that the exclusion applies if the options comprising the index are listed and traded on a national securities exchange. The commenter pointed to the differing tax treatment that may outcome if an option (not a future) is traded on a broad-primarily based safety index that turns into slender-based mostly. 7) The aggregate average every day buying and selling quantity in options on the Underlying Broad-Based Security Index is a minimum of 10,000 contracts calculated as of the preceding 6 full calendar months. 2. Proposed Rules To avert any dislocations that would doubtlessly be created by such a sudden change in a product's status, the Commissions proposed new rules underneath the CEA and Exchange Act to create a short lived exclusion from the definition of narrow-based mostly security index.104 As proposed, that exclusion would have permitted a future on a broad-primarily based index to continue to trade as such even when the index assumed slender-based characteristics during the primary 30 days of trading, provided that the index wouldn't have been a narrow-primarily based safety index, had it been in existence, for an uninterrupted period of six months prior to the first day of trading.