The brand new guidelines require nationwide securities exchanges, designated contract markets, registered DTEFs, and foreign boards of commerce to collect data to ascertain the market capitalization and dollar worth of ADTV for part securities of an index with respect to every day, in sure circumstances making an allowance for information for the previous 6 full calendar months. In the Proposing Release, the SEC estimated that any extra prices of retaining and storing the collected data mentioned above can be nominal because nationwide securities exchanges, including notice-registered national securities exchanges which have been designated as contract markets by, or registered as DTEFs with, the CFTC, are at the moment required to have recordkeeping systems in place.159 The SEC received no direct feedback on the prices of knowledge retention and storage. https://optobanking.com/coin-forum-where-crypto-enthusiasts-connect-learn-and-prosper-in-the-digital-frontier/ trading of futures contracts on broad-based safety indexes might be under the only jurisdiction of the CFTC and could also be traded only on designated contract markets, and registered DTEFs. The new rule offers a restricted exclusion from the definition of "slender-primarily based safety index" for an index underlying a futures contract that has traded for less than 30 days, as long because the index meets sure specified standards.
New Rule 3a55-2 below the Exchange Act excludes from the definition of slim-based mostly security index these security indexes on which futures contracts have traded on a designated contract market, a registered DTEF, or international board of commerce for fewer than 30 days and turn out to be slim-based mostly, offered that they meet sure standards. The calculations required under the brand new rules for market capitalization and greenback worth of ADTV may require additional knowledge storage.173 A nationwide securities exchange, designated contract market, or registered DTEF will want to contemplate learn how to retailer the data-whether or not to keep up arduous copies or electronic copies of all the computations. The overall burden in complying with Rule 17a-1 for each nationwide securities exchange, including discover registered nationwide securities exchanges, beneath new Rule 3a55-1 is subsequently estimated to be 11 hours. 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 could take each of the 11 national securities exchanges, including discover-registered national securities exchanges, anticipated to trade futures contracts on security indexes one hour yearly to retain any documents made or acquired by it in determining whether an index is a slender-based safety index.
2. Burden Hours National securities exchanges, together with discover-registered national securities exchanges, that commerce futures contacts on safety indexes might be required to comply with 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 documents associated to determinations made utilizing the definitions in Exchange Act Rule 3a55-1 for a minimum of five years, the primary two years in an simply accessible place. These modifications to the rules change considerably the methodology used to determine whether or not a security index is slim-primarily based or broad-primarily based but don't, in any means, alter the recordkeeping burden related to the preservation of the information of these calculations, i.e., the gathering of knowledge required pursuant to Rule 17a-1 beneath the Exchange Act.152 Any assortment of knowledge pursuant to the brand new rules is obligatory and can have to be retained by the nationwide securities exchanges, together with nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("notice-registered nationwide securities exchanges"), for a minimum of 5 years; for the primary two years, the information should be saved in an easily accessible place, as required underneath Exchange Act Rule 17a-1. A. The Use and Disclosure of the knowledge Collected The information collected to comply with the strategies to determine market capitalization and dollar value of ADTV which might be set forth in the final rules is required by the CFMA.
Rule 3a55-1 below the Exchange Act specifies the method to determine market capitalization and greenback value of ADTV with respect to the definition of narrow-based security index.156 Thus, the final rule provides the strategies by which a market buying and selling a futures contract on a safety index should determine the market capitalization and dollar worth 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, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under the statutory definition of slender-based safety index, the market capitalization and dollar worth 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 selected day, the "preceding 6 full calendar months" will imply the time period beginning on the same calendar date 6 months before and ending on the day previous to that day.