114 STAT. 2763A-374 PUBLIC LAW 106-554—APPENDIX E "(C) Within 1 year after the date of the enactment of the Commodity Futures Modernization Act of 2000, the Commission and the Securities and Exchange Commission jointly shall adopt rules or regulations that set forth the requirements under subparagraph (B)(iv). "(D) An index that is a narrow-based security index solely because it was a narrow-based security index for more than 45 business days over 3 consecutive calendar months pursuant to clause (iii) of subparagraph (B) shall not be a narrow-based security index for the 3 following calendar months. "(E) For purposes of subparagraphs (A) and (B)— "(i) the dollar value of average daily trading volume and the market capitalization shall be calculated as of the preceding 6 full calendar months; and "(ii) the Commission and the Securities and Exchange Commission shall, by rule or regulation, jointly specify the method to be used to determine market capitalization and dollar value of average daily trading volume. "(26) OPTION.— The term 'option' means an agreement, contract, or transaction that is of the character of, or is commonly known to the trade as, an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty'. "(27) ORGANIZED EXCHANGE. —The term 'organized exchange' means a trading facility that— "(A) permits trading— "(i) by or on behalf of a person that is not an eligible contract participant; or "(ii) by persons other than on a principal-to-principal Ijasis; or "(B) has adopted (directly or through another nongovernmental entity) rules that— "(i) govern the conduct of participants, other than rules that govern the submission of orders or execution of transactions on the trading facility; and "(ii) include disciplinary sanctions other than the exclusion of participants from trading."; and (7) by adding at the end the following: "(29) REGISTERED ENTITY.— The term 'registered entity' means— "(A) a board of trade designated as a contract market under section 5; "(B) a derivatives transaction execution facility registered under section 5a; "(C) a derivatives clearing organization registered under section 5b; and "(D) a board of trade designated as a contract market under section 5f. "(30) SECURITY.— The term 'security' means a security as defined in section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(l)) or section 3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(10)). "(31) SECURITY FUTURE.— The term 'security future' means a contract of sale for future delivery of a single security or of a narrow-based security index, including any interest therein or based on the value thereof, except an exempted security
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