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 underneath the Commodity Exchange Act ("CEA") and the Securities Exchange Act of 1934 ("Exchange Act") are excluding certain safety indexes from the definition of "slender-based security index." Specifically, https://www.youtube.com/@Coin_universe are excluding from the definition of the time period "slim-based safety index" sure indexes comprised of sequence of options on broad-based mostly security indexes. In actual fact, 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 precise statutory standards without regard to the sorts of securities that comprise the index. The Commissions consider that this situation limits the exclusion to indexes for which there's 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 should not be readily inclined to manipulation.
In addition, the Commissions imagine that futures contracts on indexes that satisfy the conditions of this exclusion shouldn't 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 choices comprising the index must must qualify for the exclusion. Given the novelty of volatility indexes, the Commissions believe at the moment that it is suitable to limit the component securities to these index choices that are listed for buying and selling on a nationwide securities exchange the place the Commissions know pricing data is present, correct and publicly accessible. For the primary time within 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, each day trading quantity had initially settled in the $250-$500 million range. Futures buying and selling is categorised as a kind of derivatives market. The surge happened right this moment when Bitcoin rose from $7,500 to a excessive of $8,800 in a frantic six hours of buying and selling.
Register immediately and create your account for the long run benefits. Futures contracts on single securities and on narrow-based security indexes (collectively, "safety futures") are jointly regulated by the CFTC and the SEC.1 To distinguish between safety futures on slender-primarily based safety indexes, which are jointly regulated by the Commissions, and futures contracts on broad-primarily based security indexes, that are beneath the unique jurisdiction of the CFTC, the CEA and the Exchange Act each contains an goal definition of the time period "slim-based safety index." A futures contract on an index that meets the definition of a slim-based security index is a security future. https://Coin-viewer.com (25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act present that, however the preliminary criteria, an index shouldn't be a slender-based safety 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 nationwide securities exchange. The commenter pointed to the differing tax remedy which will consequence if an option (not a future) is traded on a broad-based mostly safety index that becomes narrow-based. 7) The aggregate common each day buying and selling volume in choices on the Underlying Broad-Based Security Index is at the very least 10,000 contracts calculated as of the preceding 6 full calendar months. 2. Proposed Rules To avert any dislocations that could doubtlessly be created by such a sudden change in a product's standing, the Commissions proposed new rules under the CEA and Exchange Act to create a temporary exclusion from the definition of slim-primarily based safety index.104 As proposed, that exclusion would have permitted a future on a broad-based mostly index to continue to trade as such even if the index assumed narrow-based mostly traits during the primary 30 days of buying and selling, offered that the index wouldn't have been a slim-based mostly security index, had it been in existence, for an uninterrupted interval of six months prior to the primary day of trading.