Narrow based index cftc
Indexes Underlying Contracts of Foreign Boards of Trade Authorized by the CFTC until June 21, 2002, a security index is not a narrow-based security index if:. 15 Sep 2015 The issue in contention between the CFTC and the SEC is whether the Dividend Index is a security future (and in particular, a narrow-based 25 Mar 2004 Futures contracts on single securities and on narrow-based security indexes ( collectively, "security futures") are jointly regulated by the CFTC stocks and narrow-based stock indexes; (8) in response to calls to repeal the accord trading prohibitions, SEC, the U.S. securities exchanges, the President's on individual stocks and narrow-based indexes (referred to as "stock fu- indexes. The CFTC's jurisdiction over securities futures, however, was limited. 23 Nov 2009 Futures contracts on single securities and on narrow-based security indexes ( collectively, “security futures”) are jointly regulated by the CFTC
The agreement provides for joint jurisdiction between the CFTC and the SEC over single stock futures and narrow-based stock indices, both defined as security
oversight by the SEC and the CFTC of single stock futures trading. on futures on exempted securities and broad–based stock indices was left to the CFTC. part on the value of the narrow group of commodities not described in clause (1) (CFTC) concluded that the ability of primary government securities dealers to By using futures contracts based on a broad index of stocks, eq- 59 Studies have also shown that stock spreads do not widen but narrow following the intro-. 26 Feb 2020 of “narrow based security index” and modifying listing standard requirements for security futures products. He also drafted CFTC adjudicatory 2 Apr 2012 By hedging the trades through single-stock futures contracts and narrow-based stock index futures, RBC was able to reduce its exposure to Narrow-Based Security Index: In general, the Commodity Exchange Act defines a narrow-based security index as an index of securities that meets one of the following four requirements (1) it has nine or fewer components; (2) one component comprises more than 30 percent of the index weighting; (3) the five highest weighted components comprise more (1) Solely with respect to a swap that is traded on or subject to the rules of a designated contract market, swap execution facility or foreign board of trade pursuant to the Commodity Exchange Act (7 U.S.C. 1 et seq.), an index that becomes a narrow-based security index under paragraph (b) of this section solely because it was a narrow-based The agreement provides for joint jurisdiction between the CFTC and the SEC over single stock futures and narrow-based stock indices, both defined as security futures. Broad-based indices, as defined below, will remain under the CFTC’s jurisdiction. Broad-Based Stock Indices. If a futures contract on a stock index satisfies either of the
The agreement provides for joint jurisdiction between the CFTC and the SEC over single stock futures and narrow-based stock indices, both defined as security
security-index futures contracts pursuant to no-action relief issued by the Commission staff. with the SEC; and (2) a narrow-based security index, comprised of at least 90 percent securities regulations, please contact DCIO at dcio@cftc.gov. between the SEC and CFTC created serious problems for issuers, market professionals and the U.S. narrow-based indices of such securities were prohibited. oversight by the SEC and the CFTC of single stock futures trading. on futures on exempted securities and broad–based stock indices was left to the CFTC. part on the value of the narrow group of commodities not described in clause (1) (CFTC) concluded that the ability of primary government securities dealers to By using futures contracts based on a broad index of stocks, eq- 59 Studies have also shown that stock spreads do not widen but narrow following the intro-. 26 Feb 2020 of “narrow based security index” and modifying listing standard requirements for security futures products. He also drafted CFTC adjudicatory 2 Apr 2012 By hedging the trades through single-stock futures contracts and narrow-based stock index futures, RBC was able to reduce its exposure to
Narrow-Based Security Index: In general, the Commodity Exchange Act defines a narrow-based security index as an index of securities that meets one of the following four requirements (1) it has nine or fewer components; (2) one component comprises more than 30 percent of the index weighting; (3) the five highest weighted components comprise more
Narrow-Based Generally referring to an index, it indicates that the index is composed of only a few stocks, generally in a specific industry group. See also broad-based. Narrow-Based Describing an index that consists of only a few stocks. Generally speaking, a narrow-based index only includes stocks from one industry. These indices are often useful in Further, the CEA and Exchange Act provide that, notwithstanding the statutory criteria, an index is not a narrow-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 of the Commissions.
Broad-Based vs. Narrow-Based Weighted Averaged Calculation. There are two primary variations of the weighted average formula depending on what constitutes “common outstanding” in the above formula. The first, and more common, is referred to as “broad-based, weighted average” while the second is referred to as “narrow-based, weighted
(m) Additional contracts on previously-reviewed index: A new non-narrow-based security index futures contract may be offered or sold in the U.S. in reliance on a prior Foreign Security Index No-Action Letter or Commission certification, provided that the new contract is based on an index that was the subject of such Foreign Security Index No The CFTC and SEC previously have issued guidance with respect to volatility indexes and debt security indexes, and how to determine whether such indices are "narrow-based." A volatility index is not considered a narrow-based security index (i.e., it is a broad-based security index) when it meets all of the following criteria:
Broad-Based Index: An index designed to reflect the movement of the entire market. The smallest broad-based index is the Dow Jones Industrial Average with 30 industrial stocks and the largest is (m) Additional contracts on previously-reviewed index: A new non-narrow-based security index futures contract may be offered or sold in the U.S. in reliance on a prior Foreign Security Index No-Action Letter or Commission certification, provided that the new contract is based on an index that was the subject of such Foreign Security Index No