Notes

9 Ridiculous Rules About Contract
The brand new guidelines require nationwide securities exchanges, designated contract markets, registered DTEFs, and overseas 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 every day, in sure instances making an allowance for information for the previous 6 full calendar months. In the Proposing Release, the SEC estimated that any additional prices of retaining and storing the collected info discussed above would be nominal as a result of nationwide securities exchanges, together with notice-registered nationwide securities exchanges that have been designated as contract markets by, or registered as DTEFs with, the CFTC, are presently required to have recordkeeping techniques in place.159 The SEC obtained no direct comments on the costs of knowledge retention and storage. The buying and selling of futures contracts on broad-based mostly security indexes can be underneath the only jurisdiction of the CFTC and could also be traded solely on designated contract markets, and registered DTEFs. The brand new rule provides a restricted exclusion from the definition of "narrow-primarily based security index" for an index underlying a futures contract that has traded for lower than 30 days, as lengthy because the index meets certain specified standards.

New Rule 3a55-2 under the Exchange Act excludes from the definition of slender-primarily based safety index these security indexes on which futures contracts have traded on a designated contract market, a registered DTEF, or overseas board of commerce for fewer than 30 days and turn into slender-based mostly, provided that they meet sure criteria. The calculations required below the new guidelines for market capitalization and dollar worth of ADTV may require further information storage.173 A nationwide securities exchange, designated contract market, or registered DTEF will want to contemplate how to retailer the data-whether or not to maintain exhausting copies or electronic copies of all of the computations. https://macdonald-mccormack-3.federatedjournals.com/the-mayans-lost-guide-to-1-1700470036 in complying with Rule 17a-1 for each nationwide securities exchange, together with notice registered national securities exchanges, beneath new Rule 3a55-1 is subsequently estimated to be 11 hours. The present burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per year for each exchange.160 Within the Proposing Release, the SEC estimated that it might take each of the 11 national 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 an index is a slim-based security index.

2. Burden Hours National securities exchanges, together with discover-registered national securities exchanges, that commerce futures contacts on safety indexes will likely be required to comply with the recordkeeping necessities beneath Rule 17a-1. National securities exchanges, including notice-registered nationwide securities exchanges, will probably be required to retain and retailer any paperwork related to determinations made using the definitions in Exchange Act Rule 3a55-1 for at least 5 years, the first two years in an simply accessible place. These modifications to the principles change considerably the methodology used to determine whether or not a security index is narrow-based mostly or broad-primarily based however do not, in any means, alter the recordkeeping burden related to the preservation of the data of those calculations, i.e., the gathering of knowledge required pursuant to Rule 17a-1 under the Exchange Act.152 Any collection of information pursuant to the brand new rules is mandatory and can have to be retained by the national securities exchanges, together with national securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("notice-registered national securities exchanges"), for at least 5 years; for the first two years, the data must be kept in an easily accessible place, as required underneath 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 greenback value of ADTV which might be set forth in the ultimate rules is required by the CFMA.

Rule 3a55-1 under the Exchange Act specifies the strategy to find out market capitalization and dollar worth of ADTV with respect to the definition of slim-primarily based safety index.156 Thus, the ultimate rule provides the methods by which a market buying and selling a futures contract on a security index must determine the market capitalization and greenback value of ADTV to ascertain whether a security index on which it proposes to trade, or is trading, 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 greenback value 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 particular day, the "previous 6 full calendar months" will imply the time frame starting on the identical calendar date 6 months before and ending on the day previous to that day.

Website: https://macdonald-mccormack-3.federatedjournals.com/the-mayans-lost-guide-to-1-1700470036