These rules provide methods of calculation and steering for nationwide securities exchanges, designated contract markets, registered DTEFs, and international boards of trade in determining whether a safety index is slim-primarily based under the Exchange Act. Securities Markets Coalition ("Coalition"),139 raised considerations over certain tax implications that these markets believe end result from the definition of slim-based mostly safety index and the rules as proposed. As well as, the SEC believes that it is not empowered to adopt the equal of CEA Rule 41.14 under the Exchange Act, which supplies relief for futures on indexes that change into broad-primarily based, because the SEC has no jurisdiction over broad-primarily based safety index futures. The SEC additionally received several comments regarding potential prices that is likely to be incurred until completely different criteria for the definition of slim-based mostly safety index are adopted to accommodate indexes comprised of foreign securities.170 The SEC notes that the Commissions have adopted Rules 41.13 beneath the CEA and 3a55-3 beneath the Exchange Act, which establish that when a futures contract on a security index is traded on or subject to the rules of a overseas board of trade, that index will not be thought-about a slender-based security index if it would not be a slim-based security index if a futures contract on such index had been traded on a delegated contract market or registered DTEF.
Two commenters raised issues regarding the therapy of futures on Exchange Traded Funds.140 The Commissions consider that these issues fall outdoors the scope of the present rulemaking and will not address them in this context. The present burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per year for every exchange.160 In the Proposing Release, the SEC estimated that it will take each of the 11 national securities exchanges, including notice-registered nationwide securities exchanges, expected to trade futures contracts on safety indexes one hour annually to retain any documents made or acquired by it in determining whether or not an index is a narrow-based mostly security index. As to https://bitcoinxxo.com/ of which indexes qualify as broad-primarily based and that are treated as slender-based mostly, the tax laws incorporate by reference the definition of slim-based mostly security index in the Exchange Act. 2. Burden Hours National securities exchanges, together with notice-registered national securities exchanges, that trade futures contacts on safety indexes will likely be required to comply with the recordkeeping requirements beneath Rule 17a-1. https://www.cheapinternetsecuritysoftware.com/contents/%eb%b0%94%ec%9d%b4%eb%b9%84%ed%8a%b8-%ec%a0%9c%ed%9c%b4-%ed%94%84%eb%a1%9c%ea%b7%b8%eb%9e%a8%ea%b3%bc-%ec%88%98%ec%9d%b5-%ec%b0%bd%ec%b6%9c-%eb%b0%a9%eb%b2%95/ , including notice-registered national securities exchanges, can be required to retain and retailer any documents associated to determinations made using the definitions in Exchange Act Rule 3a55-1 for a minimum of 5 years, the primary two years in an easily accessible place.
The CFMA requires that the determinations as to market capitalization and dollar value of ADTV, and thus the standing of a securities index as narrow-based mostly or broad-based, be made, whereas Exchange Act Rule 17a-1 merely requires that such determinations be retained. Accordingly, to comply with these recordkeeping necessities, a nationwide securities exchange, including a discover-registered national securities exchange, that lists or trades futures contracts on slender-based mostly security indexes can be required to preserve records of any calculations used to find out whether or not an index is slender-primarily based.158 B. Total Annual Reporting and Recordkeeping Burden 1. Capital Costs Rule 17a-1 underneath the Exchange Act requires a nationwide securities exchange, together with any notice-registered national securities exchange, that trades futures contracts on a narrow-based security index to carry on file for a period of no lower than 5 years, the primary two years in an easily accessible place, all data regarding their determinations that such indexes were slim-primarily based. This commenter noted that a single compiler of the lists will result in constant treatment of futures on safety indexes.
The CFMA lifted the ban on the buying and selling of futures on single securities and on slim-based security indexes and established a framework for the joint regulation of those merchandise by the CFTC and the SEC. The CFTC believes good trigger exists for the principles to become efficient on August 21, 2001, so that eligible contract individuals could begin trading the new products as contemplated by the CFMA. The CFMA gives that principal-to-principal transactions between sure eligible contract contributors in security futures merchandise might start on August 21, 2001, or such date that a futures affiliation registered underneath Section 17 of the CEA meets the requirements in Section 15A(ok)(2) of the Exchange Act.143 The CFMA lifted the ban on, and permits the buying and selling of, futures contracts on single securities and on narrow-based security indexes. The SEC proposed these guidelines on May 17, 2001. The preliminary comment interval for the rules expired on June 18, 2001. The comment interval, nonetheless, was prolonged by the CFTC and the SEC till July 11, 2001. After reviewing and considering the comments obtained, the SEC is adopting the rules, which give the methods for markets to find out whether or not a security index is slim-primarily based or broad-primarily based as required by the Exchange Act, as amended by the CFMA.