The brand new rules require national securities exchanges, designated contract markets, registered DTEFs, and international boards of commerce to collect info to ascertain the market capitalization and greenback value of ADTV for component securities of an index with respect to every day, in certain circumstances making an allowance for data for the previous 6 full calendar months. Within the Proposing Release, the SEC estimated that any further costs of retaining and storing the collected information mentioned above would be nominal because national securities exchanges, together with discover-registered national securities exchanges which were 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 acquired no direct comments on the prices of knowledge retention and storage. The trading of futures contracts on broad-based security indexes might be underneath the sole jurisdiction of the CFTC and may be traded solely on designated contract markets, and registered DTEFs. The new rule offers a limited 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 lengthy as the index meets certain specified standards.
New Rule 3a55-2 beneath the Exchange Act excludes from the definition of slender-primarily based security index these security indexes on which futures contracts have traded on a chosen contract market, a registered DTEF, or foreign board of trade for fewer than 30 days and become slender-based mostly, offered that they meet sure standards. The calculations required under the new rules for market capitalization and greenback value of ADTV may require extra information storage.173 A national securities exchange, designated contract market, or registered DTEF will want to contemplate learn how to retailer the info-whether or not to take care of arduous copies or electronic copies of all of the computations. The overall burden in complying with Rule 17a-1 for each national securities exchange, together with notice registered national securities exchanges, underneath new Rule 3a55-1 is subsequently estimated to be 11 hours. https://m.blog.naver.com/ajjuguru/ for Rule 17a-1, as of July 20, 1998, is 50 hours per yr for every exchange.160 In the Proposing Release, the SEC estimated that it could take every of the eleven nationwide securities exchanges, together with notice-registered national securities exchanges, expected to trade futures contracts on safety indexes one hour yearly to retain any paperwork made or acquired by it in figuring out whether an index is a narrow-based mostly 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 adjust to the recordkeeping necessities beneath Rule 17a-1. National securities exchanges, including notice-registered national securities exchanges, might be required to retain and retailer any paperwork associated to determinations made utilizing the definitions in Exchange Act Rule 3a55-1 for a minimum of 5 years, the primary two years in an easily accessible place. These modifications to the rules change somewhat the methodology used to determine whether a security index is slim-based mostly or broad-based but do not, in any way, alter the recordkeeping burden related to the preservation of the information of these calculations, i.e., the collection of information required pursuant to Rule 17a-1 under the Exchange Act.152 Any assortment of information pursuant to the brand new guidelines is necessary and will should be retained by the nationwide securities exchanges, including nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("notice-registered national securities exchanges"), for a minimum of five years; for the primary two years, the information have to be kept in an easily accessible place, as required below Exchange Act Rule 17a-1. A. The Use and Disclosure of the data Collected The data collected to comply with the strategies to determine market capitalization and dollar worth of ADTV that are set forth in the final rules is required by the CFMA.
Rule 3a55-1 under the Exchange Act specifies the method to find out market capitalization and dollar value of ADTV with respect to the definition of slim-based safety index.156 Thus, the final rule provides the strategies by which a market trading a futures contract on a security index must decide the market capitalization and dollar worth of ADTV to ascertain whether a safety index on which it proposes to trade, or is buying and selling, a futures contract is slim-primarily based, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under the statutory definition of narrow-based mostly safety index, the market capitalization and dollar worth of ADTV must 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 period beginning on the same calendar date 6 months earlier than and ending on the day previous to that day.