Notes

5 Ridiculous Rules About Contract
The new guidelines require national securities exchanges, designated contract markets, registered DTEFs, and overseas boards of commerce to collect information to ascertain the market capitalization and dollar worth of ADTV for element securities of an index with respect to every day, in certain circumstances making an allowance for knowledge for the preceding 6 full calendar months. Within https://rentry.co/gpkvu Proposing Release, the SEC estimated that any additional prices of retaining and storing the collected information discussed above can be nominal because nationwide securities exchanges, including discover-registered national securities exchanges which were designated as contract markets by, or registered as DTEFs with, the CFTC, are at present required to have recordkeeping programs in place.159 The SEC acquired no direct comments on the costs of knowledge retention and storage. The trading of futures contracts on broad-primarily based safety indexes will probably be underneath the only real jurisdiction of the CFTC and may be traded only on designated contract markets, and registered DTEFs. https://telegra.ph/The-perfect-5-Examples-Of-Buy-11-22 provides a restricted exclusion from the definition of "slender-primarily based safety index" for an index underlying a futures contract that has traded for lower than 30 days, as long as the index meets sure specified criteria.

New Rule 3a55-2 beneath the Exchange Act excludes from the definition of slender-primarily based safety index those safety indexes on which futures contracts have traded on a designated contract market, a registered DTEF, or foreign board of trade for fewer than 30 days and turn into slim-based, provided that they meet certain standards. The calculations required under the new guidelines for market capitalization and dollar worth of ADTV may require additional knowledge storage.173 A national securities exchange, designated contract market, or registered DTEF will need to contemplate the way to retailer the info-whether or not to maintain exhausting copies or digital copies of all of the computations. The overall burden in complying with Rule 17a-1 for each nationwide securities exchange, together with notice registered nationwide securities exchanges, under new Rule 3a55-1 is therefore estimated to be 11 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 could take every of the eleven nationwide securities exchanges, together with notice-registered nationwide securities exchanges, anticipated to commerce futures contracts on safety indexes one hour annually to retain any paperwork made or acquired by it in figuring out whether an index is a slender-based security index.

2. Burden Hours National securities exchanges, including discover-registered nationwide securities exchanges, that trade futures contacts on security indexes can be required to comply with the recordkeeping requirements under Rule 17a-1. National securities exchanges, including discover-registered nationwide securities exchanges, can be required to retain and store any documents related to determinations made utilizing the definitions in Exchange Act Rule 3a55-1 for a minimum of five years, the first two years in an easily accessible place. These modifications to the rules change somewhat the methodology used to find out whether or not a security index is slim-based or broad-based however do not, in any approach, alter the recordkeeping burden related to the preservation of the information of those calculations, i.e., the collection of information required pursuant to Rule 17a-1 beneath the Exchange Act.152 Any collection of knowledge pursuant to the new rules is mandatory and can need to be retained by the national securities exchanges, together with nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("discover-registered nationwide securities exchanges"), for no less than 5 years; for the primary two years, the knowledge have to be stored in an simply accessible place, as required below Exchange Act Rule 17a-1. A. The Use and Disclosure of the knowledge Collected The information collected to adjust to the strategies to find out market capitalization and dollar value of ADTV which can be set forth in the ultimate rules is required by the CFMA.

Rule 3a55-1 beneath the Exchange Act specifies the strategy to determine market capitalization and dollar worth of ADTV with respect to the definition of narrow-based mostly safety index.156 Thus, the ultimate rule offers the methods by which a market buying and selling a futures contract on a safety index must determine 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 narrow-based mostly, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under the statutory definition of slender-based mostly safety index, the market capitalization and dollar value of ADTV must 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 beginning on the same calendar date 6 months earlier than and ending on the day previous to that day.

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