Sections 4d, 4f, 4g, 4k and 4p of the Act and Parts 1, 3 and 180;
The Division of Trading and Markets took a no-action position with respect to certain securities broker-dealers and registered representatives who register with the Commission as limited-purpose FCMs and APs for the sole purpose of trading certain proprietary electronically-traded broad-based-index futures contracts (the "Contracts") on a specified contract market. Under the no-action position, such limited-purpose FCMs and APs would be deemed to have complied with Commission-mandated registration, sales practice, minimum financial, treatment of customer funds, reporting, and books and records requirements by virtue of their limited-purpose registration with the Commission and their compliance with corresponding securities law regulatory and self-regulatory-organization requirements (to which they are already subject as securities broker-dealers or registered representatives). The limited-purpose FCMs and APs would remain subject to statutory disqualification proceedings, would be required to inform customers that they may still bring reparations proceedings, and would remain subject to daily computation and record requirements of Rule 1.32 concerning segregation of customer funds. In addition, with respect to books and records, they would be required to identify Contract positions in their books and records, to observe the Commission's five-year record retention requirement, to maintain in hard-copy all originally handwritten trade information documents and written orders, and to make Contract-related books and records open to inspection and copying by Commission or Justice Department representatives.