Try the latest episode of the Binance Podcast: Building Crypto Futures at Binance, the place Aaron shares his story of joining Binance and developing the Binance Futures platform. Summary: The Commodity Futures Trading Commission ("CFTC") and the Securities and Exchange Commission ("SEC") (collectively, "Commissions") by joint order beneath the Commodity Exchange Act ("CEA") and the Securities Exchange Act of 1934 ("Exchange Act") are excluding sure security indexes from the definition of "slender-based mostly security index." Specifically, the Commissions are excluding from the definition of the time period "slender-based security index" certain indexes comprised of series of options on broad-based mostly safety indexes. Actually, https://www.youtube.com/@Coin_universe (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 don't meet the precise statutory standards with out regard to the varieties of securities that comprise the index. The Commissions believe that this situation limits the exclusion to indexes for which there is a liquid market on a national 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 vulnerable to manipulation.
In addition, the Commissions believe that futures contracts on indexes that satisfy the situations of this exclusion shouldn't be readily susceptible to manipulation due to the composition, weighting, and liquidity of the securities within the Underlying Broad-Based Security Index and the liquidity that the choices comprising the index must should qualify for the exclusion. Given the novelty of volatility indexes, the Commissions imagine presently that it is appropriate to restrict the element securities to these index choices which can be listed for trading on a nationwide securities exchange where the Commissions know pricing information is current, accurate and publicly available. For the first time in the history of the derivatives exchange, 24-hour trading quantity eclipsed $1 billion. Because the launch of Binance futures’ bitcoin derivatives market on September 24, day by day buying and selling volume had initially settled in the $250-$500 million vary. Futures buying and selling is categorised as a kind of derivatives market. The surge occurred immediately when Bitcoin rose from $7,500 to a excessive of $8,800 in a frantic six hours of trading.
Register at the moment and create your account for the long run advantages. Futures contracts on single securities and on slender-based mostly security indexes (collectively, "security futures") are jointly regulated by the CFTC and the SEC.1 To differentiate between safety futures on slim-based mostly safety indexes, which are jointly regulated by the Commissions, and futures contracts on broad-primarily based security indexes, which are beneath the exclusive jurisdiction of the CFTC, the CEA and the Exchange Act every includes an objective definition of the term "slender-primarily based security index." A futures contract on an index that meets the definition of a narrow-based security index is a security future. Section 1a(25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act present that, however the initial standards, an index is just not a narrow-based mostly safety index if a contract of sale for future delivery on the index is traded on or topic to the principles of a board of trade and meets such requirements as are jointly established by rule, regulation, or order by the Commissions.
The sixth situation provides that the exclusion applies if the options comprising the index are listed and traded on a nationwide securities exchange. The commenter pointed to the differing tax treatment that may outcome if an choice (not a future) is traded on a broad-based security index that turns into slim-based. 7) The aggregate common every day trading volume in options on the Underlying Broad-Based Security Index is a minimum of 10,000 contracts calculated as of the preceding 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 standing, the Commissions proposed new guidelines under the CEA and Exchange Act to create a temporary exclusion from the definition of narrow-based mostly safety index.104 As proposed, that exclusion would have permitted a future on a broad-primarily based index to continue to trade as such even if the index assumed narrow-based mostly characteristics throughout the primary 30 days of buying and selling, offered that the index wouldn't have been a narrow-based safety index, had it been in existence, for an uninterrupted period of six months previous to the first day of buying and selling.