The brand new guidelines require nationwide securities exchanges, designated contract markets, registered DTEFs, and overseas boards of commerce to gather data to ascertain the market capitalization and dollar value of ADTV for element securities of an index with respect to each day, in certain cases considering data for the preceding 6 full calendar months. Within the Proposing Release, the SEC estimated that any additional prices of retaining and storing the collected information discussed above can be nominal because national 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 programs in place.159 The SEC acquired no direct comments on the costs of data retention and storage. The buying and selling of futures contracts on broad-primarily based safety indexes will be under the only real jurisdiction of the CFTC and may be traded only on designated contract markets, and registered DTEFs. The brand new rule provides 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 certain specified standards. New Rule 3a55-2 beneath the Exchange Act excludes from the definition of narrow-based mostly safety index these security indexes on which futures contracts have traded on a delegated contract market, a registered DTEF, or international board of trade for fewer than 30 days and become narrow-based mostly, provided that they meet certain criteria. The calculations required beneath the new guidelines for market capitalization and dollar value 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 information-whether or not to take care of onerous copies or digital copies of all of the computations. The full burden in complying with Rule 17a-1 for every nationwide securities exchange, including discover registered national securities exchanges, under new Rule 3a55-1 is due to this fact estimated to be 11 hours. The present 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 will take each of the eleven nationwide securities exchanges, including discover-registered national securities exchanges, anticipated to commerce futures contracts on security indexes one hour yearly to retain any documents made or acquired by it in determining whether an index is a slim-based safety index. 2. Burden Hours National securities exchanges, including discover-registered nationwide securities exchanges, that commerce futures contacts on safety indexes will be required to adjust to the recordkeeping requirements underneath Rule 17a-1. National securities exchanges, together with notice-registered national securities exchanges, can be required to retain and retailer any documents related 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 foundations change somewhat the methodology used to determine whether or not a safety index is slender-based or broad-based however don't, in any method, alter the recordkeeping burden associated with the preservation of the information of those calculations, i.e., the collection of data required pursuant to Rule 17a-1 below the Exchange Act.152 Any collection of data pursuant to the new rules is mandatory and can need to be retained by the national securities exchanges, together with nationwide securities exchanges registered pursuant to Section 6(g) of the Exchange Act (notice-registered national securities exchanges), for a minimum of 5 years; for the first two years, the knowledge should be saved in an simply 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 value of ADTV which might be set forth in the final guidelines is required by the CFMA. Rule 3a55-1 beneath the Exchange Act specifies the tactic to find out market capitalization and greenback value of ADTV with respect to the definition of narrow-based security index.156 Thus, the final rule supplies the methods by which a market buying and selling a futures contract on a security index must decide the market capitalization and dollar value of ADTV to ascertain whether or not a security index on which it proposes to commerce, or is buying and selling, a futures contract is narrow-based, and thus is subject to the joint jurisdiction of the CFTC and the SEC. Under https://Bitcoinxxo.com of slim-based mostly security index, the market capitalization and greenback worth of ADTV must be calculated as of the previous 6 full calendar months. Rule 3a55-1 specifies a rolling 6 month period, i.e., with respect to a particular day, the previous 6 full calendar months will mean the time frame starting on the same calendar date 6 months before and ending on the day prior to that day.
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