The new rules require national securities exchanges, designated contract markets, registered DTEFs, and overseas boards of commerce to gather information to ascertain the market capitalization and dollar value of ADTV for component securities of an index with respect to every day, in certain circumstances making an allowance for knowledge for the previous 6 full calendar months. In the Proposing Release, the SEC estimated that any further prices of retaining and storing the collected data mentioned above would be nominal as a result of national 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 presently required to have recordkeeping systems in place.159 The SEC received no direct feedback on the prices of data retention and storage. https://www.youtube.com/@Coin_universe trading of futures contracts on broad-primarily based safety indexes shall be beneath the sole jurisdiction of the CFTC and may be traded solely on designated contract markets, and registered DTEFs. The brand new rule offers a limited exclusion from the definition of "narrow-based mostly safety index" for an index underlying a futures contract that has traded for lower than 30 days, as lengthy because the index meets sure specified criteria.
New Rule 3a55-2 below the Exchange Act excludes from the definition of slender-primarily based security index those security 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 slim-based, provided that they meet sure standards. The calculations required under the brand new guidelines for market capitalization and dollar worth of ADTV could require extra data storage.173 A national securities exchange, designated contract market, or registered DTEF will want to think about the way to store the info-whether or not to maintain exhausting copies or electronic copies of all of the computations. The total burden in complying with Rule 17a-1 for each nationwide securities exchange, together with discover registered national securities exchanges, below new Rule 3a55-1 is due to this fact estimated to be 11 hours. The present burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per yr for each exchange.160 Within the Proposing Release, the SEC estimated that it might take every of the 11 nationwide securities exchanges, including notice-registered nationwide securities exchanges, anticipated to trade futures contracts on security indexes one hour annually to retain any paperwork made or acquired by it in determining whether an index is a slim-based mostly security index.
2. Burden Hours National securities exchanges, together with discover-registered nationwide securities exchanges, that trade futures contacts on security indexes shall be required to adjust to the recordkeeping necessities beneath Rule 17a-1. National securities exchanges, including discover-registered national securities exchanges, might 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 5 years, the first two years in an simply accessible place. These modifications to the rules change somewhat the methodology used to find out whether or not a safety index is slim-based mostly or broad-based however don't, in any approach, alter the recordkeeping burden related to the preservation of the data of those calculations, i.e., the gathering of information required pursuant to Rule 17a-1 beneath the Exchange Act.152 Any assortment of knowledge pursuant to the brand new rules is necessary and will have to be retained by the nationwide securities exchanges, including nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("discover-registered nationwide securities exchanges"), for at least 5 years; for the primary two years, the data must be saved in an easily accessible place, as required under Exchange Act Rule 17a-1. A. The Use and Disclosure of the knowledge Collected The information collected to comply with the strategies to determine market capitalization and greenback worth of ADTV which are set forth in the final rules is required by the CFMA.
Rule 3a55-1 below the Exchange Act specifies the strategy to find out market capitalization and dollar value of ADTV with respect to the definition of slender-based security index.156 Thus, the final rule provides the strategies by which a market trading a futures contract on a security index must determine the market capitalization and dollar worth of ADTV to ascertain whether or not a safety index on which it proposes to commerce, or is buying and selling, a futures contract is narrow-based, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under the statutory definition of slim-based security index, the market capitalization and dollar 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 specific day, the "preceding 6 full calendar months" will mean the period of time starting on the identical calendar date 6 months before and ending on the day prior to that day.