Take a look at the most recent episode of the Binance Podcast: Building Crypto Futures at Binance, the place Aaron shares his story of becoming a member of Binance and growing 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 certain security indexes from the definition of "slim-based mostly security index." Specifically, https://www.youtube.com/@Coin_universe are excluding from the definition of the term "slim-based security index" certain indexes comprised of sequence of options on broad-primarily based security indexes. In truth, 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 don't meet the precise statutory standards without regard to the varieties 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 national 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 vulnerable to manipulation.
As well as, the Commissions consider that futures contracts on indexes that fulfill the conditions of this exclusion should not be readily inclined to manipulation due to the composition, weighting, and liquidity of the securities in 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 imagine right now that it is suitable to limit the element securities to those index options which might be listed for buying and selling on a nationwide securities exchange where the Commissions know pricing info is present, correct and publicly obtainable. For the primary time within the history of the derivatives exchange, 24-hour buying and selling volume eclipsed $1 billion. Because the launch of Binance futures’ bitcoin derivatives market on September 24, every day buying and selling quantity had initially settled in the $250-$500 million range. Futures trading is labeled as a type of derivatives market. The surge occurred today when Bitcoin rose from $7,500 to a high of $8,800 in a frantic six hours of trading.
Register today and create your account for the future advantages. Futures contracts on single securities and on narrow-based safety indexes (collectively, "safety futures") are jointly regulated by the CFTC and the SEC.1 To distinguish between safety futures on slim-based security indexes, that are jointly regulated by the Commissions, and futures contracts on broad-based safety indexes, that are underneath the unique jurisdiction of the CFTC, the CEA and the Exchange Act every consists of an goal definition of the term "slender-based mostly safety 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 provide that, notwithstanding the preliminary criteria, an index just isn't a slim-primarily based security index if a contract of sale for future delivery on the index is traded on or topic to the principles of a board of commerce and meets such requirements as are jointly established by rule, regulation, or order by the Commissions.
The sixth condition supplies that the exclusion applies if the choices comprising the index are listed and traded on a nationwide securities exchange. The commenter pointed to the differing tax treatment that will result if an option (not a future) is traded on a broad-based security index that turns into narrow-based. 7) The aggregate average every day trading quantity 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 potentially 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 temporary exclusion from the definition of narrow-based mostly security 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 slim-based mostly traits during the first 30 days of buying and selling, supplied that the index would not 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.