Narrow-based security index

In the United States, the criteria that a stock index must meet to be considered narrow-based are defined by regulation, for example having nine or fewer component securities or a minimum concentration of one or more of the highest weighted component securities. Derivatives on narrow-based stock indexes are under the joint jurisdiction of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Derivatives on broad-based stock indexes are under the sole jurisdiction of the Commodity Futures Trading Commission.