The brand new rules require national securities exchanges, designated contract markets, registered DTEFs, and international boards of commerce to collect data to ascertain the market capitalization and dollar value of ADTV for element securities of an index with respect to every day, in certain instances bearing in mind information for the previous 6 full calendar months. In the Proposing Release, the SEC estimated that any extra costs of retaining and storing the collected data mentioned above can be nominal because nationwide securities exchanges, including discover-registered national securities exchanges which have been designated as contract markets by, or registered as DTEFs with, the CFTC, are currently required to have recordkeeping programs in place.159 The SEC obtained no direct feedback on the costs of data retention and storage. The trading of futures contracts on broad-based mostly safety indexes can be underneath the only real jurisdiction of the CFTC and may be traded solely on designated contract markets, and registered DTEFs. The brand new rule supplies a limited exclusion from the definition of "narrow-based mostly safety index" for an index underlying a futures contract that has traded for lower than 30 days, as lengthy as the index meets sure specified criteria.
New Rule 3a55-2 beneath the Exchange Act excludes from the definition of slender-based mostly safety index those safety indexes on which futures contracts have traded on a chosen contract market, a registered DTEF, or foreign board of commerce for fewer than 30 days and turn into slender-primarily based, supplied that they meet certain standards. The calculations required under the brand new guidelines for market capitalization and dollar worth of ADTV may require extra knowledge storage.173 A nationwide securities exchange, designated contract market, or registered DTEF will need to contemplate the best way to retailer the info-whether or not to take care of onerous copies or electronic copies of all of the computations. The full burden in complying with Rule 17a-1 for every national securities exchange, including notice registered nationwide securities exchanges, beneath new Rule 3a55-1 is due to this fact estimated to be 11 hours. The current burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per yr for each exchange.160 Within the Proposing Release, the SEC estimated that it could take every of the 11 nationwide securities exchanges, including notice-registered national securities exchanges, expected to commerce futures contracts on security indexes one hour annually to retain any paperwork made or acquired by it in figuring out whether or not an index is a slim-based safety index.
2. Burden Hours National securities exchanges, including discover-registered national securities exchanges, that commerce futures contacts on security indexes can be required to adjust to the recordkeeping requirements below Rule 17a-1. National securities exchanges, together with discover-registered national 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 no less than 5 years, the primary two years in an simply accessible place. These modifications to the principles change considerably the methodology used to find out whether or not a safety index is narrow-based mostly or broad-primarily based but don't, in any means, alter the recordkeeping burden related to the preservation of the records of those calculations, i.e., the collection of information required pursuant to Rule 17a-1 below the Exchange Act.152 Any collection of knowledge pursuant to the new guidelines is mandatory and can should be retained by the national securities exchanges, together with nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act ("discover-registered nationwide securities exchanges"), for no less than five years; for the first two years, the data have to be saved in an simply accessible place, as required underneath Exchange Act Rule 17a-1. A. The Use and Disclosure of the knowledge Collected The data collected to comply with the strategies to determine market capitalization and greenback worth of ADTV which are set forth in the final guidelines is required by the CFMA.
Rule 3a55-1 beneath the Exchange Act specifies the tactic to determine market capitalization and dollar worth of ADTV with respect to the definition of slim-based mostly security index.156 Thus, the ultimate rule supplies the strategies by which a market trading a futures contract on a safety index must decide the market capitalization and dollar worth of ADTV to ascertain whether a security index on which it proposes to commerce, or is buying and selling, a futures contract is slim-based, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under https://encoinguide.com/ of slender-based security index, the market capitalization and dollar worth of ADTV have to be calculated "as of the previous 6 full calendar months." Rule 3a55-1 specifies a "rolling" 6 month interval, i.e., with respect to a specific day, the "previous 6 full calendar months" will mean the period of time beginning on the same calendar date 6 months before and ending on the day previous to that day.