Narrow based index futures
Cboe Futures Exchange (CFE), Futures (Equity Index, Volatility Index) Indices OneChicago (ONE), Futures (Narrow Based Indices, Single Stock) Indices 8 Sep 2005 retail foreign currency transactions; (2) portfolio margining for security futures products; and (3) futures on narrow-based securities indexes. on futures on exempted securities and broad–based stock indices was left to part on the value of the narrow group of commodities not described in clause (1) A narrow-based index likely would not satisfy the generic exchange listing rules. When describing an index of futures contracts in an offering document for a
Note that it is not the number of stocks that make up an index that determines whether the index is broad-based or narrow-based, but rather, the diversity of those underlying securities and the markets they cover. Broad-base Indices. A broad-base index is designed to represent the performance of the entire stock market.
The Commodity Futures Modernization Act of 2000 authorizes trading, on a delayed basis, stock futures, meaning single-stock and narrow-based stock index futures, and options on such futures. A futures contract on an index that meets the definition of a narrow-based security index is a security future. A futures contract on an index that does not meet the definition of a narrow-based security index is a futures contract on a broad-based security index. 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 than 60 percent of the index weighting, or (4) the lowest weighted components comprising in the aggregate 25 percent of the index’s weighting have Hence the compromise: Futures on broad-based stock indexes could be created and regulated as futures, but futures on single stocks and narrow-based indexes were forbidden. But 18 years later Index futures, like all future contracts, give the trader or investor the power and the commitment to deliver the cash value based on an underlying index at a specified future date. Unless the narrow-based index (NBI): An index which contains a small group of industry-specific stocks consisting mostly of future contracts. A narrow-based index will not consist of more than ten of these industry-specific stocks. For example, a narrow-based index may include stocks from the auto industry, energy industry, or construction industry.
(4) Commodity-based indexes based wholly or principally on underlying (1) A futures commission merchant as a partner, officer, or employee (or any natural of narrow-based security index as used in the definition of security-based swap,
A Guide to the Language of the Futures Industry Narrow-Based Security Index: In general, the Commodity Exchange Act defines a narrow-based security Narrow-Based Security Indexes. A securities index is classified as a narrow- based security index if it meets any one of the following criteria: The index Narrow Based Stock Index Futures. 35100. SCOPE OF CHAPTER. This chapter is limited in application to trading in any contract that is a security future (as such. 9 May 2002 AGENCIES: Commodity Futures Trading Commission and Securities on narrow-based security indexes (collectively, "security futures") by the 25 Mar 2004 Futures contracts on single securities and on narrow-based security indexes ( collectively, "security futures") are jointly regulated by the CFTC 15 Sep 2015 a dividend index as a non-security based index futures contract over Dividend Index is a security future (and in particular, a narrow-based An index is narrow-based if (1) it has nine or fewer stocks, (2) any single stock in the The newly authorized futures on narrow-based indexes, like options on
and American Depositary Receipts), as well as narrow-based security indices. Futures on other types of securities and options on security futures contracts may
20 Jul 2015 Hence the compromise: Futures on broad-based stock indexes could be created and regulated as futures, but futures on single stocks and narrow 7 Jan 2018 For example, futures based on broad‑based indices are within the exclusive jurisdiction of the CFTC while futures based on narrow-based 27 Feb 2018 The SEC and the CFTC have overlapping jurisdiction over futures contracts on single securities and futures on a “narrow-based security-index” (4) Commodity-based indexes based wholly or principally on underlying (1) A futures commission merchant as a partner, officer, or employee (or any natural of narrow-based security index as used in the definition of security-based swap, Get the latest data from stocks futures of major world indexes. Find updated quotes on top stock market index futures. Narrow-Based Stock Index Futures shall be based on such indices consisting of two or more underlying securities, which satisfy the requirements set forth in CFTC Regulation 41.21(b), as determined by the Exchange. 35102.B. Trading Hours Narrow-Based Stock Index Futures shall be traded during such hours, as determined by the Exchange.
Security futures products (SFP) are futures whose underlying instrument is either a single security or a narrow-based security index. SFPs are considered both a
COMMODITY FUTURES TRADING COMMISSION SECURITIES AND EXCHANGE COMMISSION (Release No. 34-46009) Joint Order Excluding from the Definition of Narrow-Based Security Index those Security Indexes that Qualified for the Exclusion from that Definition under Section 1a(25)(B)(v) of the Commodity Exchange Act and Section 3(a)(55)(C)(v) of the Securities Exchange Act of 1934 Note that it is not the number of stocks that make up an index that determines whether the index is broad-based or narrow-based, but rather, the diversity of those underlying securities and the markets they cover. Broad-base Indices. A broad-base index is designed to represent the performance of the entire stock market. On September 26, the CFTC adopted Rule 30.13 establishing a certification procedure for the offer or sale to persons in the U.S. of non-narrow-based security index futures contracts traded on foreign boards of trade.The new certification procedure will replace the existing staff no-action process. The final rule will be effective on October 26.
20 Jul 2015 Hence the compromise: Futures on broad-based stock indexes could be created and regulated as futures, but futures on single stocks and narrow 7 Jan 2018 For example, futures based on broad‑based indices are within the exclusive jurisdiction of the CFTC while futures based on narrow-based 27 Feb 2018 The SEC and the CFTC have overlapping jurisdiction over futures contracts on single securities and futures on a “narrow-based security-index” (4) Commodity-based indexes based wholly or principally on underlying (1) A futures commission merchant as a partner, officer, or employee (or any natural of narrow-based security index as used in the definition of security-based swap, Get the latest data from stocks futures of major world indexes. Find updated quotes on top stock market index futures. Narrow-Based Stock Index Futures shall be based on such indices consisting of two or more underlying securities, which satisfy the requirements set forth in CFTC Regulation 41.21(b), as determined by the Exchange. 35102.B. Trading Hours Narrow-Based Stock Index Futures shall be traded during such hours, as determined by the Exchange. 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 criteria set forth in Path A or Path B below, it qualifies as a broad-based index under the CFTC’s exclusive jurisdiction: