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These guidelines present strategies of calculation and guidance for national securities exchanges, designated contract markets, registered DTEFs, and overseas boards of commerce in figuring out whether or not a safety index is narrow-based below the Exchange Act. Securities Markets Coalition ("Coalition"),139 raised concerns over certain tax implications that these markets believe outcome from the definition of narrow-based safety index and the foundations as proposed. As well as, the SEC believes that it is not empowered to undertake the equivalent of CEA Rule 41.14 beneath the Exchange Act, which offers relief for futures on indexes that turn into broad-based mostly, because the SEC has no jurisdiction over broad-primarily based safety index futures. The SEC also received a number of feedback concerning potential costs that is likely to be incurred until totally different standards for the definition of slender-based security index are adopted to accommodate indexes comprised of international securities.170 The SEC notes that the Commissions have adopted Rules 41.13 below the CEA and 3a55-3 under the Exchange Act, which establish that when a futures contract on a safety index is traded on or topic to the rules of a overseas board of commerce, that index will not be considered a narrow-based mostly safety index if it wouldn't be a slim-primarily based safety index if a futures contract on such index had been traded on a chosen contract market or registered DTEF.

Two commenters raised issues regarding the therapy of futures on Exchange Traded Funds.140 The Commissions believe that these issues fall outdoors the scope of the present rulemaking and won't handle them in this context. The current burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per 12 months for every exchange.160 In the Proposing Release, the SEC estimated that it would take every of the eleven nationwide securities exchanges, together with notice-registered nationwide securities exchanges, expected to commerce futures contracts on safety indexes one hour annually to retain any paperwork made or obtained by it in figuring out whether or not an index is a slender-primarily based safety index. As to the determination of which indexes qualify as broad-based and that are treated as slender-based, the tax legal guidelines incorporate by reference the definition of slim-based safety index in the Exchange Act. 2. Burden Hours National securities exchanges, including discover-registered nationwide securities exchanges, that trade futures contacts on safety indexes will be required to comply with the recordkeeping necessities below Rule 17a-1. National securities exchanges, including notice-registered national securities exchanges, might be required to retain and store any paperwork associated to determinations made using the definitions in Exchange Act Rule 3a55-1 for no less than 5 years, the first two years in an simply accessible place.

The CFMA requires that the determinations as to market capitalization and dollar worth of ADTV, and thus the status of a securities index as slender-primarily based or broad-based mostly, be made, whereas Exchange Act Rule 17a-1 merely requires that such determinations be retained. Accordingly, to adjust to https://Bitcoinxxo.com recordkeeping requirements, a national securities exchange, including a notice-registered national securities exchange, that lists or trades futures contracts on slender-based security indexes will probably be required to preserve information of any calculations used to find out whether or not an index is slim-based mostly.158 B. Total Annual Reporting and Recordkeeping Burden 1. Capital Costs Rule 17a-1 beneath the Exchange Act requires a national securities exchange, including any discover-registered nationwide securities exchange, that trades futures contracts on a slender-based mostly safety index to carry on file for a period of no less than five years, the first two years in an simply accessible place, all data regarding their determinations that such indexes had been slim-based. This commenter famous that a single compiler of the lists will end in consistent remedy of futures on safety indexes.

The CFMA lifted the ban on the buying and selling of futures on single securities and on slender-based mostly security indexes and established a framework for the joint regulation of those products by the CFTC and the SEC. The CFTC believes good trigger exists for the foundations to turn into efficient on August 21, 2001, so that eligible contract contributors may start trading the brand new merchandise as contemplated by the CFMA. The CFMA supplies that principal-to-principal transactions between certain eligible contract individuals in safety futures products could commence on August 21, 2001, or such date that a futures association registered under Section 17 of the CEA meets the requirements in Section 15A(okay)(2) of the Exchange Act.143 The CFMA lifted the ban on, and permits the trading of, futures contracts on single securities and on slender-based security indexes. https://www.youtube.com/@Coin_universe proposed these guidelines on May 17, 2001. https://Coin-viewer.com for the rules expired on June 18, 2001. The remark period, nonetheless, was extended by the CFTC and the SEC until July 11, 2001. After reviewing and considering the feedback obtained, the SEC is adopting the rules, which offer the strategies for markets to find out whether a safety index is slender-based or broad-primarily based as required by the Exchange Act, as amended by the CFMA.

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