The new guidelines require national securities exchanges, designated contract markets, registered DTEFs, and international boards of trade to collect info to ascertain the market capitalization and dollar worth of ADTV for component securities of an index with respect to every day, in sure cases taking into account information for the previous 6 full calendar months. Within the Proposing Release, the SEC estimated that any extra costs of retaining and storing the collected info discussed above can be nominal as a result of nationwide securities exchanges, together with discover-registered national securities exchanges which have been 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 obtained no direct feedback on the prices of information retention and storage. The trading of futures contracts on broad-based mostly safety indexes might be underneath the only jurisdiction of the CFTC and could also be traded solely on designated contract markets, and registered DTEFs. The brand new rule offers a restricted exclusion from the definition of "narrow-based mostly security index" for an index underlying a futures contract that has traded for lower than 30 days, as lengthy as the index meets certain specified standards.
New Rule 3a55-2 under the Exchange Act excludes from the definition of slender-primarily based security index these safety indexes on which futures contracts have traded on a chosen contract market, a registered DTEF, or international board of commerce for fewer than 30 days and turn out to be slender-based mostly, supplied that they meet sure criteria. The calculations required under the brand new rules for market capitalization and greenback worth of ADTV may require extra data storage.173 A national securities exchange, designated contract market, or registered DTEF will want to contemplate how to retailer the information-whether to take care of hard copies or electronic copies of all the computations. https://thrane-guerrero-2.blogbright.net/top-10-websites-to-search-for-binance-1700196327 in complying with Rule 17a-1 for every national securities exchange, including discover registered nationwide securities exchanges, underneath new Rule 3a55-1 is therefore estimated to be eleven hours. The current burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per year for each exchange.160 In the Proposing Release, the SEC estimated that it might take each of the eleven nationwide securities exchanges, together with discover-registered nationwide securities exchanges, expected to commerce futures contracts on security indexes one hour yearly to retain any paperwork made or obtained by it in figuring out whether or not an index is a narrow-primarily based safety index.
2. Burden Hours National securities exchanges, together with notice-registered national securities exchanges, that commerce futures contacts on safety indexes shall be required to comply with the recordkeeping necessities underneath Rule 17a-1. National securities exchanges, including discover-registered nationwide securities exchanges, will be required to retain and retailer any documents associated to determinations made utilizing the definitions in Exchange Act Rule 3a55-1 for a minimum of five years, the primary two years in an easily accessible place. These modifications to the rules change considerably the methodology used to determine whether or not a safety index is narrow-based or broad-based mostly but don't, in any manner, alter the recordkeeping burden associated with the preservation of the information of these calculations, i.e., the collection of knowledge required pursuant to Rule 17a-1 underneath the Exchange Act.152 Any collection of data pursuant to the brand new guidelines is obligatory and will have to be retained by the nationwide securities exchanges, together with national securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("discover-registered nationwide securities exchanges"), for a minimum of 5 years; for the primary two years, the knowledge have to be saved in an simply accessible place, as required under 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 value of ADTV that are set forth in the final rules is required by the CFMA.
Rule 3a55-1 underneath the Exchange Act specifies the tactic to determine market capitalization and dollar worth of ADTV with respect to the definition of slim-based mostly security index.156 Thus, the final rule supplies the methods by which a market trading a futures contract on a security index must decide the market capitalization and dollar value of ADTV to ascertain whether or not a safety index on which it proposes to commerce, or is trading, a futures contract is slim-based mostly, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under the statutory definition of narrow-primarily based safety index, the market capitalization and greenback worth of ADTV should be calculated "as of the preceding 6 full calendar months." Rule 3a55-1 specifies a "rolling" 6 month interval, i.e., with respect to a particular day, the "previous 6 full calendar months" will imply the time period beginning on the identical calendar date 6 months earlier than and ending on the day prior to that day.