These rules present strategies of calculation and steering for national securities exchanges, designated contract markets, registered DTEFs, and international boards of trade in determining whether or not a safety index is slim-based mostly under the Exchange Act. Securities Markets Coalition (Coalition),139 raised concerns over sure tax implications that these markets consider consequence from the definition of slim-primarily based security index and the rules as proposed. As well as, https://jtswebsites.com/contents/%eb%b0%94%ec%9d%b4%eb%82%b8%ec%8a%a4-%ec%88%98%ec%88%98%eb%a3%8c-%ea%b5%ac%ec%a1%b0%ec%99%80-%ea%b0%80%eb%8a%a5%ed%95%9c-%ec%a7%80%ec%b6%9c%ec%9d%84-%ec%9d%b4%ed%95%b4%ed%95%98%eb%8a%94-%eb%b0%a9/ believes that it is not empowered to adopt the equal of CEA Rule 41.14 under the Exchange Act, which provides 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 a number of feedback regarding potential costs that is perhaps incurred until totally different criteria for the definition of narrow-primarily based security index are adopted to accommodate indexes comprised of international securities.170 The SEC notes that the Commissions have adopted Rules 41.13 underneath the CEA and 3a55-3 beneath the Exchange Act, which set up that when a futures contract on a security index is traded on or subject to the foundations of a international board of trade, that index won't be considered a slim-primarily based security index if it would not be a slim-primarily based security index if a futures contract on such index have been traded on a chosen contract market or registered DTEF. Two commenters raised points regarding the therapy of futures on Exchange Traded Funds.140 The Commissions imagine that these points fall exterior the scope of the present rulemaking and won't address them on 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 each of the eleven national securities exchanges, together with discover-registered national securities exchanges, expected to trade futures contracts on security indexes one hour yearly to retain any paperwork made or obtained by it in figuring out whether an index is a slim-based mostly security index. As to the willpower of which indexes qualify as broad-primarily based and which are treated as narrow-primarily based, the tax laws incorporate by reference the definition of narrow-primarily based security index within the Exchange Act. 2. Burden Hours National securities exchanges, including discover-registered national securities exchanges, that commerce futures contacts on safety indexes will likely be required to adjust to the recordkeeping requirements under Rule 17a-1. National securities exchanges, together with discover-registered nationwide securities exchanges, will be required to retain and store any paperwork associated to determinations made utilizing the definitions in Exchange Act Rule 3a55-1 for no less than five 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-primarily based or broad-primarily 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, together with a discover-registered national securities exchange, that lists or trades futures contracts on slender-primarily based safety indexes can be required to preserve information of any calculations used to find out whether an index is slender-primarily based.158 B. Total Annual Reporting and Recordkeeping Burden 1. Capital Costs Rule 17a-1 below the Exchange Act requires a national securities exchange, including any notice-registered nationwide securities exchange, that trades futures contracts on a slim-based safety index to carry on file for a period of no lower than five years, the first two years in an easily accessible place, all records regarding their determinations that such indexes had been narrow-primarily based. This commenter famous that a single compiler of the lists will lead to consistent remedy of futures on security indexes. The CFMA lifted the ban on the buying and selling of futures on single securities and on slim-based safety indexes and established a framework for the joint regulation of those merchandise by the CFTC and the SEC. The CFTC believes good cause exists for the foundations to turn out to be effective on August 21, 2001, so that eligible contract participants might start trading the brand new products as contemplated by the CFMA. The CFMA offers that principal-to-principal transactions between sure eligible contract contributors in safety futures merchandise could begin on August 21, 2001, or such date that a futures association registered below Section 17 of the CEA meets the requirements 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 slender-based security indexes. The SEC proposed these guidelines on May 17, 2001. The initial comment interval for the principles expired on June 18, 2001. The remark period, however, was prolonged by the CFTC and the SEC until July 11, 2001. After reviewing and considering the comments received, the SEC is adopting the rules, which offer the strategies for markets to determine whether a security index is slender-based or broad-based mostly as required by the Exchange Act, as amended by the CFMA.
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