Take a look at the newest episode of the Binance Podcast: Building Crypto Futures at Binance, the place Aaron shares his story of becoming a member of 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 under the Commodity Exchange Act ("CEA") and the Securities Exchange Act of 1934 ("Exchange Act") are excluding sure security indexes from the definition of "narrow-based mostly security index." Specifically, the Commissions are excluding from the definition of the time period "slender-based mostly safety index" sure indexes comprised of sequence of choices on broad-based security indexes. In reality, 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 security indexes that do not meet the particular statutory standards without regard to the types of securities that comprise the index. The Commissions believe that this condition limits the exclusion to indexes for which there is a liquid market on a nationwide securities exchange for the choices on the Underlying Broad-Based Security Index, which contributes to the Commissions' view that futures on such indexes shouldn't be readily susceptible to manipulation.
In addition, the Commissions consider that futures contracts on indexes that satisfy the circumstances of this exclusion should not be readily inclined to manipulation because of the composition, weighting, and liquidity of the securities within the Underlying Broad-Based Security Index and the liquidity that the options comprising the index should have to qualify for the exclusion. Given https://www.youtube.com/@Coin_universe of volatility indexes, the Commissions consider at this time that it is appropriate to limit the part securities to those index options that are listed for buying and selling on a nationwide securities exchange where the Commissions know pricing data is present, accurate and publicly out there. For the first time in the history of the derivatives exchange, 24-hour trading volume eclipsed $1 billion. Since the launch of Binance futures’ bitcoin derivatives market on September 24, daily buying and selling volume had initially settled within the $250-$500 million range. Futures trading is labeled as a sort of derivatives market. The surge happened at present when Bitcoin rose from $7,500 to a excessive of $8,800 in a frantic six hours of buying and selling.
Register today and create your account for the future advantages. Futures contracts on single securities and on slim-primarily based security indexes (collectively, "security futures") are jointly regulated by the CFTC and the SEC.1 To distinguish between safety futures on narrow-based mostly safety indexes, which are jointly regulated by the Commissions, and futures contracts on broad-based safety indexes, that are below the exclusive jurisdiction of the CFTC, the CEA and the Exchange Act every includes an goal definition of the time period "narrow-based security index." A futures contract on an index that meets the definition of a slender-based safety index is a safety future. Section 1a(25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act present that, notwithstanding the initial criteria, an index is not a slender-based security index if a contract of sale for future delivery on the index is traded on or subject to the rules of a board of trade and meets such requirements as are jointly established by rule, regulation, or order by the Commissions.
The sixth situation offers that the exclusion applies if the options comprising the index are listed and traded on a national securities exchange. The commenter pointed to the differing tax remedy which will consequence if an option (not a future) is traded on a broad-primarily based safety index that turns into slim-based. 7) The aggregate common every day buying and selling volume in choices on the Underlying Broad-Based Security Index is no less than 10,000 contracts calculated as of the previous 6 full calendar months. 2. Proposed Rules To avert any dislocations that could probably be created by such a sudden change in a product's status, the Commissions proposed new rules below the CEA and Exchange Act to create a short lived exclusion from the definition of slender-based mostly security index.104 As proposed, that exclusion would have permitted a future on a broad-primarily based index to continue to commerce as such even if the index assumed narrow-primarily based traits throughout the primary 30 days of buying and selling, provided that the index wouldn't have been a narrow-primarily based safety index, had it been in existence, for an uninterrupted period of six months prior to the first day of trading.