Method for Determining Market Capitalization and Dollar Value of Average Daily Trading Volume; Application of the Definition of Narrow-Based Security Index; Joint Final Rule

The Commodity Futures Trading Commission ("CFTC") and Securities and Exchange Commission ("SEC") (collectively, "Commissions") are adopting joint final rules to implement new statutory provisions enacted by the Commodity Futures Modernization Act of 2000 ("CFMA"). Specifically, the CFMA directs the Commissions to jointly specify by rule or regulation the method to be used to determine "market capitalization" and "dollar value of average daily trading volume" for purposes of the new definition of "narrow-based security index," including exclusions from that definition, in the Commodity Exchange Act ("CEA") and the Securities Exchange Act of 1934 ("Exchange Act"). The CFMA also directs the Commissions to jointly adopt rules or regulations that set forth the requirements for an index underlying a contract of sale for future delivery traded on or subject to the rules of a foreign board of trade to be excluded from the definition of "narrow-based security index."