Notes

What Everyone Should Learn about Bitcoin
Check out the newest episode of the Binance Podcast: Building Crypto Futures at Binance, where Aaron shares his story of becoming a member of Binance and growing 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 safety indexes from the definition of "narrow-primarily based security index." Specifically, the Commissions are excluding from the definition of the term "narrow-based mostly security index" sure indexes comprised of sequence of choices on broad-based mostly safety indexes. In https://ctxt.io/2/AADQ0oLsFQ , 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 safety indexes that don't meet the specific statutory criteria with out regard to the kinds of securities that comprise the index. The Commissions believe that this situation limits the exclusion to indexes for which there is a liquid market on a national 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 vulnerable to manipulation.

In addition, the Commissions believe that futures contracts on indexes that satisfy the circumstances of this exclusion should not be readily susceptible to manipulation because of the composition, weighting, and liquidity of the securities within the Underlying Broad-Based Security Index and the liquidity that the options comprising the index should should qualify for the exclusion. Given the novelty of volatility indexes, the Commissions imagine right now that it is appropriate to restrict the part securities to these index options which might be listed for trading on a nationwide securities exchange where the Commissions know pricing info is current, correct and publicly obtainable. For the primary time in the history of the derivatives exchange, 24-hour trading quantity eclipsed $1 billion. Since the 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 trading is categorised as a kind of derivatives market. The surge occurred today when Bitcoin rose from $7,500 to a high of $8,800 in a frantic six hours of buying and selling.

Register at this time and create your account for the future benefits. Futures contracts on single securities and on slender-based mostly safety indexes (collectively, "security futures") are jointly regulated by the CFTC and the SEC.1 To tell apart between safety futures on narrow-primarily based safety indexes, which are jointly regulated by the Commissions, and futures contracts on broad-primarily based safety indexes, which are underneath the exclusive jurisdiction of the CFTC, the CEA and the Exchange Act every consists of an goal definition of the term "slim-primarily based safety index." A futures contract on an index that meets the definition of a slim-based security index is a security future. Section 1a(25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act provide that, notwithstanding the preliminary criteria, an index is just not a slim-primarily based security index if a contract of sale for future delivery 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 provides that the exclusion applies if the choices comprising the index are listed and traded on a national securities exchange. The commenter pointed to the differing tax remedy that may consequence if an possibility (not a future) is traded on a broad-primarily based security index that turns into slim-based. 7) The aggregate common each day trading volume 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 potentially be created by such a sudden change in a product's standing, the Commissions proposed new guidelines beneath the CEA and Exchange Act to create a brief exclusion from the definition of slender-based mostly safety index.104 As proposed, that exclusion would have permitted a future on a broad-based mostly index to continue to commerce as such even if the index assumed slender-based traits during the primary 30 days of buying and selling, provided that the index wouldn't have been a slim-based mostly security index, had it been in existence, for an uninterrupted period of six months previous to the first day of buying and selling.

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