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These rules provide strategies of calculation and steering for national securities exchanges, designated contract markets, registered DTEFs, and overseas boards of trade in figuring out whether or not a security index is narrow-based mostly 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 slender-primarily based safety index and the principles as proposed. In addition, the SEC believes that it is not empowered to undertake the equal of CEA Rule 41.14 beneath the Exchange Act, which offers relief for futures on indexes that turn into broad-primarily based, because the SEC has no jurisdiction over broad-primarily based security index futures. The SEC also obtained several feedback relating to potential prices that is perhaps incurred except completely different standards 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.Thirteen under the CEA and 3a55-3 underneath the Exchange Act, which set up that when a futures contract on a security index is traded on or subject to the principles of a foreign board of commerce, that index will not be thought-about a slim-based mostly security index if it would not be a slender-based safety index if a futures contract on such index had been traded on a chosen contract market or registered DTEF.

Two commenters raised points regarding the remedy 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 current burden hour estimate for Rule 17a-1, as of July 20, 1998, is 50 hours per year for each exchange.160 Within the Proposing Release, the SEC estimated that it might take every of the 11 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 acquired by it in figuring out whether or not an index is a slender-based security index. As to the dedication of which indexes qualify as broad-primarily based and which are handled as slender-primarily based, the tax legal guidelines incorporate by reference the definition of slim-based mostly security index within the Exchange Act. 2. Burden Hours National securities exchanges, together with discover-registered national securities exchanges, that trade futures contacts on safety indexes shall be required to adjust to the recordkeeping necessities underneath Rule 17a-1.  https://Bitcoinxxo.com , including notice-registered national securities exchanges, will likely be required to retain and store any documents related to determinations made using the definitions in Exchange Act Rule 3a55-1 for at least five years, the primary two years in an easily accessible place.

The CFMA requires that the determinations as to market capitalization and greenback worth of ADTV, and thus the status of a securities index as slender-based mostly or broad-based mostly, be made, while Exchange Act Rule 17a-1 simply requires that such determinations be retained. Accordingly, to adjust to these recordkeeping necessities, a national securities exchange, including a notice-registered nationwide securities exchange, that lists or trades futures contracts on slender-based safety indexes will be required to preserve data of any calculations used to find out whether or not an index is slim-based mostly.158 B. Total Annual Reporting and Recordkeeping Burden 1. Capital Costs Rule 17a-1 underneath the Exchange Act requires a national securities exchange, together with any notice-registered nationwide securities exchange, that trades futures contracts on a slim-primarily based security index to keep on file for a period of no less than 5 years, the primary two years in an easily accessible place, all records concerning their determinations that such indexes have been slim-based mostly. This commenter noted that a single compiler of the lists will lead to constant remedy of futures on security indexes.

The CFMA lifted the ban on the trading of futures on single securities and on slim-based mostly security indexes and established a framework for the joint regulation of those products by the CFTC and the SEC. The CFTC believes good cause exists for the foundations to change into efficient on August 21, 2001, in order that eligible contract individuals might begin buying and selling the new products as contemplated by the CFMA. The CFMA gives that principal-to-principal transactions between sure eligible contract participants in safety futures products might commence on August 21, 2001, or such date that a futures association registered beneath Section 17 of the CEA meets the necessities in Section 15A(okay)(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 safety indexes. The SEC proposed these rules on May 17, 2001. The initial comment interval for the principles expired on June 18, 2001. The remark interval, however, was prolonged by the CFTC and the SEC until July 11, 2001. After reviewing and considering the feedback received, the SEC is adopting the principles, which provide the methods for markets to determine whether or not a safety index is slender-primarily based or broad-based as required by the Exchange Act, as amended by the CFMA.