Notes

4 Ridiculous Rules About Contract
The new rules require national securities exchanges, designated contract markets, registered DTEFs, and foreign boards of trade to collect data to ascertain the market capitalization and dollar value of ADTV for component securities of an index with respect to each day, in certain instances making an allowance for knowledge for the preceding 6 full calendar months. Within the Proposing Release, the SEC estimated that any additional costs of retaining and storing the collected data mentioned above would be nominal as a result of nationwide securities exchanges, including notice-registered nationwide securities exchanges which were designated as contract markets by, or registered as DTEFs with, the CFTC, are currently required to have recordkeeping systems in place.159 The SEC acquired no direct feedback on the costs of information retention and storage. The trading of futures contracts on broad-based safety indexes will be under the only jurisdiction of the CFTC and may be traded solely on designated contract markets, and registered DTEFs. The new rule supplies a limited exclusion from the definition of "narrow-based safety index" for an index underlying a futures contract that has traded for less than 30 days, as lengthy because the index meets sure specified standards.

New Rule 3a55-2 underneath the Exchange Act excludes from the definition of slender-based mostly security index those safety indexes on which futures contracts have traded on a designated contract market, a registered DTEF, or foreign board of commerce for fewer than 30 days and develop into slender-based mostly, offered that they meet sure criteria. The calculations required below the new guidelines for market capitalization and dollar value of ADTV may require extra information storage.173 A national securities exchange, designated contract market, or registered DTEF will want to contemplate methods to retailer the info-whether to take care of hard copies or electronic copies of all of the computations. The overall burden in complying with Rule 17a-1 for every national securities exchange, including discover registered nationwide securities exchanges, under new Rule 3a55-1 is subsequently estimated to be eleven hours. The current 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 each of the eleven nationwide securities exchanges, together with discover-registered national securities exchanges, expected to commerce futures contracts on safety indexes one hour annually to retain any paperwork made or received by it in determining whether or not an index is a slim-based safety index.

2. Burden Hours National securities exchanges, including notice-registered national securities exchanges, that trade futures contacts on safety indexes will be required to adjust to the recordkeeping necessities beneath Rule 17a-1. National securities exchanges, together with discover-registered national securities exchanges, will 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. https://bladedigitalmedia.com/contents/%eb%b0%94%ec%9d%b4%eb%b9%84%ed%8a%b8-%ed%8e%80%eb%94%a9-%eb%b9%84%ec%9c%a8-%eb%82%b4%ec%97%ad%ec%9d%b4-%ec%a4%91%ec%9a%94%ed%95%9c-%ec%9d%b4%ec%9c%a0%eb%8a%94-%eb%ac%b4%ec%97%87%ec%9d%b8%ea%b0%80/ to the principles change somewhat the methodology used to find out whether or not a safety index is slender-based or broad-primarily based but don't, in any approach, alter the recordkeeping burden related to the preservation of the records of these calculations, i.e., the collection of information required pursuant to Rule 17a-1 under the Exchange Act.152 Any collection of data pursuant to the new guidelines is obligatory and can must be retained by the national securities exchanges, including nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("notice-registered national securities exchanges"), for at least five years; for the primary two years, the knowledge should 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 find out market capitalization and dollar value of ADTV which might be set forth in the final rules is required by the CFMA.

Rule 3a55-1 beneath the Exchange Act specifies the tactic to determine market capitalization and dollar worth of ADTV with respect to the definition of slim-primarily based safety index.156 Thus, the final rule supplies the methods by which a market trading a futures contract on a security index should determine the market capitalization and dollar worth of ADTV to ascertain whether or not a safety index on which it proposes to trade, or is trading, a futures contract is slender-based, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under the statutory definition of slim-primarily based safety index, the market capitalization and dollar value of ADTV should be calculated "as of the preceding 6 full calendar months." Rule 3a55-1 specifies a "rolling" 6 month period, i.e., with respect to a particular day, the "previous 6 full calendar months" will mean the time period starting on the identical calendar date 6 months before and ending on the day prior to that day.

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