The new rules require national securities exchanges, designated contract markets, registered DTEFs, and overseas boards of trade to assemble information to ascertain the market capitalization and dollar value of ADTV for element securities of an index with respect to every day, in certain instances considering knowledge for the previous 6 full calendar months. In the Proposing Release, the SEC estimated that any further costs of retaining and storing the collected information discussed above would be nominal as a result of national securities exchanges, together with discover-registered national securities exchanges that have been designated as contract markets by, or registered as DTEFs with, the CFTC, are at present required to have recordkeeping techniques in place.159 The SEC received no direct comments on the costs of knowledge retention and storage. The buying and selling of futures contracts on broad-based safety indexes will probably be underneath the sole jurisdiction of the CFTC and could also be traded only on designated contract markets, and registered DTEFs. The brand new rule supplies a limited exclusion from the definition of "slender-based safety index" for an index underlying a futures contract that has traded for less than 30 days, as long as the index meets sure specified standards.
New Rule 3a55-2 beneath the Exchange Act excludes from the definition of narrow-based security index those 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 into slim-based mostly, offered that they meet certain standards. The calculations required below the brand new guidelines for market capitalization and dollar worth of ADTV could require further information storage.173 A nationwide securities exchange, designated contract market, or registered DTEF will need to contemplate how one can store the data-whether to maintain onerous copies or electronic copies of all of the computations. The total burden in complying with Rule 17a-1 for every nationwide securities exchange, together with notice registered national securities exchanges, below new Rule 3a55-1 is due to this fact estimated to be eleven hours. The present burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per 12 months for every exchange.160 Within the Proposing Release, the SEC estimated that it might take every of the eleven national securities exchanges, together with notice-registered national securities exchanges, anticipated to commerce futures contracts on safety indexes one hour annually to retain any documents made or obtained by it in figuring out whether an index is a slender-based safety index.
2. Burden Hours National securities exchanges, including notice-registered national securities exchanges, that commerce futures contacts on safety indexes will be required to comply with the recordkeeping necessities beneath Rule 17a-1. National securities exchanges, together with discover-registered nationwide securities exchanges, will likely be required to retain and retailer any documents related to determinations made utilizing the definitions in Exchange Act Rule 3a55-1 for no less than five years, the first two years in an simply accessible place. https://www.youtube.com/@Coin_universe to the rules change considerably the methodology used to find out whether or not a safety index is narrow-primarily based or broad-primarily based however do not, in any method, 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 below the Exchange Act.152 Any assortment of information pursuant to the brand new guidelines is obligatory and will need 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 nationwide securities exchanges"), for no less than 5 years; for the first two years, the information must be kept in an easily accessible place, as required under Exchange Act Rule 17a-1. A. The Use and Disclosure of the information Collected The data collected to adjust to the methods to determine market capitalization and dollar worth of ADTV which are set forth in the ultimate guidelines is required by the CFMA.
Rule 3a55-1 beneath the Exchange Act specifies the strategy to find out market capitalization and greenback value of ADTV with respect to the definition of slim-based security index.156 Thus, the ultimate rule gives the strategies by which a market buying and selling a futures contract on a security index should determine the market capitalization and dollar value of ADTV to ascertain whether or not a security index on which it proposes to trade, or is trading, a futures contract is slender-based mostly, and thus is topic 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 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 specific day, the "preceding 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.