Take a look at the newest episode of the Binance Podcast: Building Crypto Futures at Binance, where Aaron shares his story of joining Binance and creating the Binance Futures platform. Summary: The Commodity Futures Trading Commission ("CFTC") and the Securities and Exchange Commission ("SEC") (collectively, "Commissions") by joint order below the Commodity Exchange Act ("CEA") and the Securities Exchange Act of 1934 ("Exchange Act") are excluding certain security indexes from the definition of "narrow-based security index." Specifically, the Commissions are excluding from the definition of the term "slender-based security index" sure indexes comprised of collection of choices on broad-based safety indexes. Actually, Section 1a(25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act give the Commissions joint authority to make determinations with respect to safety indexes that do not meet the specific statutory standards with out regard to the kinds of securities that comprise the index. The Commissions imagine that this situation limits the exclusion to indexes for which there's a liquid market on a nationwide securities exchange for the options on the Underlying Broad-Based Security Index, which contributes to the Commissions' view that futures on such indexes shouldn't be readily prone to manipulation.
In addition, the Commissions imagine that futures contracts on indexes that fulfill the circumstances of this exclusion shouldn't be readily susceptible to manipulation because of the composition, weighting, and liquidity of the securities in the Underlying Broad-Based Security Index and the liquidity that the options comprising the index should must qualify for the exclusion. Given the novelty of volatility indexes, the Commissions imagine right now that it is acceptable to restrict the component securities to those index options which are listed for trading on a nationwide securities exchange where the Commissions know pricing info is present, accurate and publicly accessible. For the first time in the history of the derivatives exchange, 24-hour buying and selling quantity eclipsed $1 billion. Because the launch of Binance futures’ bitcoin derivatives market on September 24, each day trading volume had initially settled in the $250-$500 million range. Futures buying and selling is labeled as a type of derivatives market. The surge occurred at the moment when Bitcoin rose from $7,500 to a high of $8,800 in a frantic six hours of trading.
Register right this moment and create your account for the future advantages. Futures contracts on single securities and on narrow-based security indexes (collectively, "security futures") are jointly regulated by the CFTC and the SEC.1 To distinguish between safety futures on narrow-based security indexes, which are jointly regulated by the Commissions, and futures contracts on broad-based safety indexes, which are beneath the unique jurisdiction of the CFTC, the CEA and the Exchange Act each includes an goal definition of the time period "slim-based safety index." A futures contract on an index that meets the definition of a slim-primarily based security index is a safety future. Section 1a(25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act provide that, however the initial standards, an index is not a slim-based safety index if a contract of sale for future supply on the index is traded on or topic to the rules of a board of trade and meets such necessities as are jointly established by rule, regulation, or order by the Commissions.
The sixth situation gives that the exclusion applies if the choices comprising the index are listed and traded on a nationwide securities exchange. https://trudawnsolutions.com/%EC%8B%9C%EC%9E%A5%EC%97%90%EC%84%9C%20%EB%B9%84%ED%8A%B8%EC%BD%94%EC%9D%B8%20%EB%B0%98%EA%B0%90%EA%B8%B0%EC%9D%98%20%EC%8B%A4%EC%A0%9C%20%EA%B8%B0%EB%8A%A5%EA%B3%BC%20%EC%97%AD%ED%95%A0 pointed to the differing tax therapy that will consequence if an choice (not a future) is traded on a broad-based security index that becomes slender-based mostly. 7) The aggregate common daily trading volume in choices on the Underlying Broad-Based Security Index is at the least 10,000 contracts calculated as of the previous 6 full calendar months. 2. Proposed Rules To avert any dislocations that might potentially be created by such a sudden change in a product's standing, the Commissions proposed new rules beneath the CEA and Exchange Act to create a brief exclusion from the definition of slim-primarily based safety index.104 As proposed, that exclusion would have permitted a future on a broad-based index to proceed to commerce as such even if the index assumed narrow-based traits throughout the primary 30 days of trading, provided that the index wouldn't have been a slim-primarily based safety index, had it been in existence, for an uninterrupted period of six months prior to the first day of trading.