Try the newest episode of the Binance Podcast: Building Crypto Futures at Binance, the place Aaron shares his story of joining 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 below the Commodity Exchange Act (“CEA”) and the Securities Exchange Act of 1934 (“Exchange Act”) are excluding certain safety indexes from the definition of “narrow-primarily based safety index.” Specifically, the Commissions are excluding from the definition of the term “slim-primarily based safety index” certain indexes comprised of sequence of options on broad-primarily based security indexes. The truth is, 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 don’t meet the specific statutory standards with out 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 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 prone to manipulation.

In addition, the Commissions consider that futures contracts on indexes that fulfill the situations of this exclusion shouldn’t be readily prone 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 have to qualify for the exclusion. Given the novelty of volatility indexes, the Commissions imagine at the moment that it is acceptable to restrict the element securities to those index options which can be listed for trading on a national securities exchange the place the Commissions know pricing information is current, correct and publicly out there. For the first time in the historical past of the derivatives exchange, 24-hour trading quantity eclipsed $1 billion. Since the launch of Binance futures’ bitcoin derivatives market on September 24, day by day buying and selling quantity had initially settled within the $250-$500 million range. Futures trading is classified as a type of derivatives market. The surge happened in the present day when Bitcoin rose from $7,500 to a excessive of $8,800 in a frantic six hours of trading.

Register as we speak and create your account for the longer term advantages. Futures contracts on single securities and on slim-primarily based security indexes (collectively, “safety futures”) are jointly regulated by the CFTC and the SEC.1 To tell apart between safety futures on narrow-based safety indexes, that are jointly regulated by the Commissions, and futures contracts on broad-primarily based security indexes, that are underneath the unique jurisdiction of the CFTC, the CEA and the Exchange Act each contains an objective definition of the term “slim-based safety index.” A futures contract on an index that meets the definition of a narrow-based security index is a safety future. Section 1a(25)(B)(vi) of the CEA and Section 3(a)(55)(C)(vi) of the Exchange Act provide that, notwithstanding the initial criteria, an index is just not a slender-based mostly security index if a contract of sale for future supply on the index is traded on or topic 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 condition supplies 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 that may result if an option (not a future) is traded on a broad-based mostly security index that becomes slender-based. 7) The aggregate common day by day buying and selling volume in choices on the Underlying Broad-Based Security Index is at least 10,000 contracts calculated as of the previous 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 guidelines 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-primarily based index to continue to trade as such even if the index assumed slim-based mostly characteristics during the first 30 days of trading, provided that the index would not have been a narrow-based mostly safety index, www.youtube.com had it been in existence, for an uninterrupted period of six months prior to the first day of buying and selling.